Guzzo the Contrarian

This past week’s Intelligent Investing with Steve Forbes showcases an interview with Charles “Chuck” Royce. Chuck Royce, legendary small and mid-cap value investor and the founder of The Royce Funds tells Steve how he’s putting his cash to work in turbulent markets.

As an individual investor focusing on small and micro-cap, low-priced stocks, The Royce Funds are well-known to me as leaders finding hidden opportunities in this sector.

Back in the day, just beginning to invest in individual stocks, I would often check my stock picks against the stock market holdings of the Royce Micro-Cap Fund (and others) as a gauge of my own due diligence.

If my pick was held by this well-managed fund, or if this fund (and others) invested in any of my picks after the fact, confidence in my stock-picking abilities was boosted. This initial strategy helped me learn to trust in my own judgments.

So, when I found this 20-minute video interview while browsing through Forbes.com, I just had to take the time to see what Mr. Royce has to say.

Mr. Forbes asks the right questions, and Mr. Royce is forthcoming in his economic and market views. I was especially intrigued concerning his opinion of the banking industry, and where it’s headed.

While I no longer check my stock picks against any mutual fund, I’m always open to other’s viewpoints and opinions, especially someone with 36-years of experience as a smaller-company value portfolio manager. There’s always something to learn.

This interview was well worth twenty-minutes of my time.