Research Alpha - No One Left to Sell, Revisited

I spoke with Michael McGaughy, founder and CIO of Research Alpha, about what it means to invest where crisis, illiquidity, and institutional abandonment have driven valuations to generational lows. This was a timely chance to catch up on Michael’s thinking, how his portfolio has evolved, and what the last few years have taught him about investing through dislocation.Michael explains that his process is built around three things: quality people, structures that align minority and majority shareholders, and crisis-level valuations. We discuss why he spends so much time studying ownership, families, and incentives, how that work began in Indonesia, and why he believes the same lens applies across much of the world outside the Anglo-Saxon markets. Along the way, he shares examples from Pakistan, including a Toyota dealership (Indus Motors) and Lucky Cement, that illustrate how much of investing ultimately comes down to capital allocation and stewardship rather than sector narratives alone.We also explore the difference between foreign and local capital, why forced selling and ETF closures can create extraordinary opportunities, and how reforms in places like Nigeria can matter more than top-down commentators appreciate. The conversation closes with a candid reflection on Michael’s biggest lesson from recent years, namely the cost of selling too soon, and with a discussion of where he is currently finding value, including in Turkey.As always, this conversation is for general discussion only, not investment advice.