#YoungInvChat is a live Twitter chat which happens every Tuesday or Thursday at 10:15pm GMT. We interview young investors and stock traders on Twitter while permitting new investors and millennials to ask these investors any question they have about investing. We also engage in discussions about the stock market and investing with youths all-over the world through our #YoungInvChat platform.
On July 10th, 2016, we had the privilege of interviewing 22year old stock trader; John-Paul Pigeon. Mr. Pigeon was featured on Cnbc, Martha Stewart Show and Business Insider’s 20 under 20 in Finance. He was also featured in Business Insider’s “The Most Powerful Person in Finance at Every Age”. He was also the co-founder of Marchese and Pigeon Investments. He primarily trades equities and their derivatives. Below is the twitter chat that took place on Twitter using the hashtag #YoungInvChat:
YIC: John-Paul Pigeon welcome to #YoungInvChat
JP: Thanks man, I appreciate it.
YIC: What got you interested in investing?
JP: Started off with a book titled “Rich Dad Poor Dad”—the stories got me interested in the biz/finance world in general.
YIC: Robert Kiyosaki’s “Rich Dad Poor Dad” really changed my mindset too.
YIC: How can I identify profitable companies to invest in?
JP: I like to use screeners on Bloomberg or other platforms to identify stocks with characteristics worth looking into.
YIC: What characteristics do you look for in stocks that you invest in?
JP: Value, momentum and profitability. Value usually [Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)/ Free Cash Flow (FCF)/ Enterprise Value (EV)/ Profits], Momentum (12months price), Profits (Return On Invested Capital, Return On Earnings)
YIC: Will you describe yourself as a value investor or a growth investor?
JP: Value as it has a known historical premia over growth investing. However, adding manager alpha is easier with growth.
YIC: Is excellence in Mathematics required to be an investor?
JP: No, I believe there are many ways to skin this cat – Mathematics is not a prerequisite.
YIC: That gives some of us hope, hahahaaa.
JP: Haha basic algebra is undoubtedly helpful but a PhD in Physics isn’t necessary for most styles of investing.
YIC: Which stock will you want to buy and hold forever?
JP: Honestly, I don’t have a great answer for that; need to do more deep fundamental research to really get a good hold on that one.
YIC: What industry do you think has great potentials?
JP: Definitely, the consumer staples sector. Historically has very strong risk adjusted returns relative to other sectors.
YIC: When is the best time to buy a stock?
JP: Preferably when it’s undervalued and has price momentum (and you’re comfortable with it from fundamental Point Of View too)
YIC: How do you identify undervalued stocks?
JP: I recommend using screeners such as the one at finviz.com
YIC: Are activist investors a threat or a blessing?
JP: Depends on if you’re a shareholder or management haha. For shareholders, definitely a blessing in my opinion.
YIC: Hahahaaa very true. CEOs detest them.
YIC: Is it advisable to invest in controlled companies?
JP: By controlled companies do you mean when the majority of voting rights are held by management?
YIC: Yeah when management or a family owns greater percentage of voting rights
JP: Really depends on their track record of running the business and how shareholder friendly they’ve been in my opinion.
YIC: Last but one question: What’s your favorite business quote and who is your favorite investor?
JP: Ahh that’s hard. How about ‘When the tide rolls in, you can see who’s been swimming naked’ by Buffett.
JP: Favorite investor probably Joel Greenblatt right now.
YIC: I love Joel Greenblatt’s “The Little Book That Beats The Market” for its humor and practical insights.
YIC: What’s your worst mistake as an investor and what’s your advice to new investors?
JP: Worst mistake: focusing on short term trading too early
& Advice: Understand style beta and how that will shape investments going forward.
YIC: Thanks for enlightening us today about the stock market. You just mentored the next Warren Buffetts.
JP: Thanks for doing this, it was a pleasure.
Published by Mawunyo Adjei