Microcap Investing During Market Corrections and Bear Markets

Ian Cassel Blog, Educational, Radio Program 6 Comments

Mike Schellinger and I have been full time private microcap investors for several years, and we have successfully invested through two bear markets and several market corrections. You don’t know how good you are until you’ve invested through a bear market. A strategy that’s tested is a strategy that can be trusted. In this program, Mike and I talk about the current market environment in microcaps and how we navigate market corrections and bear markets. (Click Play Button To Listen or Download File)

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Did you like this program? Here are two more programs we think you will like:

Part 1: So You Want To Be A Full Time MicroCap Investor?

Part 2: So You Want To Be A Full Time MicroCap Investor?

MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $300m market cap) trading on United States and Canadian markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. 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. If you are a passionate microcap investor, Join Us.



About the MicroCap Expert Author

Ian Cassel

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Ian has been investing in microcaps for 15 years and has been a full time microcap investor since 2008. Ian looks to invest in great management teams running great businesses with a moat. He tries to invest in the best 5-6-7 companies he can find at all times. Ian founded MicroCapClub in 2011 to be a place for “real” and experienced investors in the microcap space to share ideas and learn from one another. When Ian isn’t researching stocks or administering MicroCapClub, you can find him reading, golfing, or shopping at Costco with his wife.

Comments 6

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  2. hi ian,

    So I was wondering if you can ask the club members this, but how often do you guys see accounting shenanigans in the microcap space? I believe there was no blog post on this and the topic can easily be the size of a book, but do you think that microcap companies are more likely to play accounting games than larger companies?

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      William, thanks for the comment/question.

      The microcap space is certainly prone to accounting “red flags”, but I would say it’s not as much as some (mainstream financial media) would like you to think. It can be the numbers themselves (ex. Gross Margins 2-3x higher than peers) or the red flags can be stuff you dig up when doing qualitative analysis. You just have to read through all the filings and footnotes to the filings. I also believe the amount of red flags is somewhat correlated to what types of companies you are looking for/looking at as an investor. What I mean by that is you may find more red flags when looking at story stocks then you will looking at companies with profitable operations. I don’t run into red flags that much anymore because I set a very high bar and am quick to pass on things that don’t fit my checklist.

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