129 - What is the role of a Catalyst in Value Investing?

Mental Models discussed in this podcast: Catalyst Activation Energy Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode129 Catalysts in Value Investing Catalyst Definition Trade vs Hold Return Free Call Option Catalysts speed up the rate of multiple expansion leading to a high IRR "trade" return Business Catalysts vs Stock Catalysts Solitron Devices Example   Summary: Catalysts can supercharge investing returns for value investor if utilized properly OR they can distract from a central thesis and cause you to make poor decisions. A catalyst should be seen as a free call option that boosts a "trade" return.