All Great Companies Started As Small Companies

Ian Cassel Blog, Educational 14 Comments

Microcap companies (<$300m market cap) represent 48% of all public companies in North America. The ~11,000 microcap companies in North America have a combined market value of $490 billion, smaller than the current market capitalization of Google. Some of the best investors ever, including Warren Buffett, Peter Lynch, Joel Greenblatt, and many others started their careers investing in microcaps. Some of the best performing public companies ever, including Berkshire Hathaway, Wal-Mart, Amgen, Netflix, and many others started as small microcap companies. The key to outsized returns is finding great companies early because all great companies started as small companies.

“How do you get into these great companies? One method is what I’d call the method of finding them small – get’em when they’re little. For example, buy Wal-Mart when Sam Walton first goes public and so forth. And a lot of people try to do just that. And it’s a very beguiling idea. If I were a young man, I might actually go into it.” – Charlie Munger

I am humbled and honored to say I’ve been a full time private microcap investor since 2009. “Full time private microcap investor” is just a fancy way of saying I support myself by managing my own capital, and I only invest in small microcap companies. I don’t run a fund or manage other people’s money. Last week I was invited to present my story, my strategy, and the case for microcap investing to a group in California. They seemed to enjoy the presentation, so I thought others might find the presentation useful as well.

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 is a full-time microcap investor and founder of MicroCapClub, the MicroCap Leadership Summit, and co-founder of the Intelligent Fanatics Project. Ian started investing as a teenager and learned from losing his money over and over again. Today he is a full-time private investor that supports himself and his family by investing in microcaps. Microcap companies are the smallest public companies that exist, representing 48% of all public companies in North America. Berkshire Hathaway, Wal-Mart, Amgen, Netflix, and many others started as small microcap companies. Ian’s belief is the key to outsized returns is finding great companies early because all great companies started as small companies.

Comments 14

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  1. hi ian,
    That was a great presentation. Just a question about Mike. When you say that he reads every PR in north america, are you referring to the PR at otcmarkets.com?

  2. Amazing presentation. Is there an article of yours which I can refer to figure out if the company’s capital structure is clean or not ? ..Is it just focussing on debt levels ?

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  3. Great presentation. One question.

    Small illiquid returning 17,87% 1972-2009. Do you have data including the last 7 years? Thx!

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  4. Thank you Ian for the inspiring presentation.
    very interesting. MicroCapClub.com is now saved in my “favorites” value investing list
    and I am sure I will be visiting very often.
    Keep those gems coming.
    Shachar

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