Talent Distribution

In 2013, Brian Scalabrine, a recently retired 11-year NBA player, had enough.

Scalabrine was sick and tired of hearing average Joes say they could beat him one-on-one on the court. The armchair professionals insisted that Scalabrine, who averaged 3.1 points per game over his career, a poor player by NBA standards, would be an easy challenge.

Scalabrine wanted to shut them up. Scalabrine took on four of Boston’s best amateur ballers, dubbed it the “Scallenge” and recorded it for all to see. Some had Division - 1 college experience. All had supreme confidence they would win.

Here is how it went.

The Vanilla Godzilla lambasted every single one. The D-1 guy who played at Syracuse lost to Scalabrine 11-3. The next two average Joes didn’t even score a point on Scalabrine. And the last competitor couldn’t score more than 3 points, too. Once the former NBA player figured out the competition, they didn’t have a chance. In total, Scalabrine scored 44 points to their 6. 

For safe measure, Scalabrine finished by facing off against the three radio hosts who were running the “Scallenge”. Despite being outnumbered 3-to-1, Scalabrine scorched them 11-1. 

Why is this story important? 

At the end, Brian Scalabrine said something prophetic, “I’m way closer to LeBron James than you are to me.”

Let that sink in for a moment.


We all are trying to succeed at investing. We enjoy the process. We enjoy the challenge, but we all want above average returns. Otherwise, what’s the point? Just invest in index funds.

All of us, I believe, deep down in the lowest depths of our ego, hope that we can reach the peak, the apex of our field. That desire is to rub shoulders with the best, compete at the highest level AND be considered the best, too.

Let’s face it though. We can’t all be a freak of nature. That just isn’t statistically possible.

There’s a much greater chance, however, we are the average Joes thinking, ignorantly, that we can keep up with the bottom of the barrel of the top 1%, the Brian Scalabrine’s of investing. 

The “White Mamba”, as Scalabrine has been nicknamed, was far from the best NBA player. But to play in the NBA for any length of time, one is in an elite group of the best basketball players in the world. The focus of the viewer’s attention fixates on the elite of the elites. Don’t forget: they’re all phenomenal vs the rest of us.

Here is the reality. Investors form themselves into the bell curve we see in all areas of human talent, like above. At the left are the bad ones. This group makes up 50% of the human population. This group lacks the skill, genetics, knowledge and “fitness” to do the most basic of task at a manageable, let alone great level over a long period.

Next to them, is a group which is slightly smaller but still large, roughly 40%. These are the mildly able investors. They might survive for a short time, or might be lucky enough to look good during boom times, but when the tide turns, they’re history. These are no more than one-hit wonders.

The next level is much smaller. These are the good investors, operators, artists, basketball players and so on. When I say good, they consistently smoke weaker competition and attain above average results. They usually operate in small niches. Generally, these are the people who’ve reached the top of their field with mountains and mountains of work, intelligence and fanaticism. Brian Scalabrine would be at the top of this pack.

Above them and us all, are the Disney’s, the Walton’s, the Buffett’s, the Malone’s, the Mozart’s, the Jordan’s, the Jackson’s, the Jon Jones’s and the Rockefeller’s. These are the freaks of nature. Divine accidents, gifted at birth and through nurture with talents beyond us mere mortals. Everything comes at least 4 times quicker to them so each stroke of effort multiplies exponentially allowing them to dance circles around everyone while we all bash our heads into the wall wondering enviously, “How on earth do they do that?”

So be honest with yourself first. Where do you personally fall on the bell curve? 

It’s a bull market and heady part of a cycle, so more people think they can tussle with the Brian Scalabrine’s of investing by themselves and win. But that’s silly. Those individuals are much, much closer to the freaks of nature than most of us are to them. 

Our estimation of our own abilities is probably higher than it actually is. It’s like asking a group of random people who are great drivers. Every hand goes up. Build a margin of safety in. Deduct plenty of points from your initial knee jerk estimation. 

As an investor, I would put myself in the middle of the mildly able. I have worked years to go from barely able to average. But I am honest about it.

The path from barely able to phenomenal is close to lottery odds. And moving from barely able to the level of the freak of nature on your own is impossible. It will not happen, full stop.

Thankfully, for those of us who are mortal, being part of a group with high standards accelerates development and gives you something you couldn’t ever get alone. It is what has helped me.

Think of young boys in Edo-period Japan. They grew up surrounded by sword mastery. A samurai’s speed and precision were not seen as miraculous because they saw it daily. It was simply normal.

Investors of Graham-and-Doddsville succeeded for the same reason. They were immersed in Graham’s relentless standards. Above average results became routine in that environment. Ian talks about the difference between good, great, and GOAT stock pickers here.

Inside MicroCapClub, we have witnessed 299 multi-baggers. Many of us not only found them early but also held them through gut-wrenching volatility. That is the harder part. The difference between selling early and compounding wealth often comes down to conviction, and conviction grows when you see how others, especially those with more experience and skill than you, work through the same challenges.

In our forums you can follow the entire record of discussions as ideas unfolded. XPEL was first pitched in 2013 at $0.36. Members debated it through the 3M lawsuit, the business setbacks, the recovery, and the run to a hundred times higher. Kraken Robotics was profiled ten years ago at $0.23 and became a 10-bagger and has a treasury trove of discussion. Kneat.com was profiled at $0.50 cents in 2017 and also became a 10-bagger with plenty of discussion through its journey. Idaho Strategic Resources was profiled in 2013 at $1.26 (split-adjusted) and has become a 20+-bagger with pages of discussion. There are many of these case studies waiting for you to study and learn from.

On top of that, there is a constant flow of new ideas. Some are fresh companies never discussed before. Others are older names with new developments. The community itself becomes a filter as the best investors share work, challenge assumptions, and continue the dialogue. Our conferences provide another layer of connection, helping you build a network in person that strengthens the ties formed online.

The more effort you put into the Club, the more you gain.

The next decade’s multibaggers are being dissected here today. The only question is whether you will be inside the room.

_{MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $500m market cap) trading on United States, Canadian, European, and Australian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. Since 2011, our members have profiled 1300+ microcap companies. Investors can join our community by applying to become a member or subscribing to gain instant view only access. MicroCapClub’s mission is to foster the highest quality microcap investor Community, produce Educational content for investors, and promote better Leadership in the microcap arena. For more information, visit https://microcapclub.com/ and https://microcapclub.com/summit/}