MicroCapClub Year In Review 2016: Performance and Letter

Ian Cassel Blog 2 Comments

I couldn’t be prouder of what our community has accomplished in 2016 which is illustrated by the infographic above. In North America alone, microcap companies employ over 2.8 million workers. The best investors ever including Warren Buffett, Peter Lynch, and many others started building their early wealth by investing in microcaps. The best performing stocks ever including, Berkshire Hathaway, Wal-Mart, Apple, Amgen, Netflix, and many others started as microcap companies. ~80% of the best performing stocks over the last ten years originated out of the microcap space.

You would think given these statistics that there would be a love affair or euphoria surrounding microcaps, and yet all we have is a big divide. As private equity and venture capital has pulled in over $800 billion in capital since 2009, over $2 billion has flown out of actively managed US microcap funds. As crowdfunding sites like Kickstarter, Indiegogo, RocketHub, and others allow almost any investor to invest in risky private company startups, increased regulation has all but chocked off funding and even owning small microcap companies. There is a huge misperception about small public companies.

I believe the misperception has been fueled by a lack of leadership in the microcap space. Marc Andreessen, Peter Theil, Ben Horowitz, are billionaire venture capitalists and their success and legion of fans have catapulted the venture capital space to unprecedented growth. It’s hard to go even an hour without seeing a financial journalist praising the venture capital industry.

The Microcap space doesn’t have any billionaire investors that are on the front lines preaching its investing merits and thwarting off the daily deluge of attacks from the financial media. The naysayers, and there are many, point to how bad the returns have been in the microcap space citing failures and frauds. I would make the argument there are just as many failures in private small emerging companies (PE-Venture Capital) than there are public small emerging companies (microcaps).  Microcaps are a material part of the economy and worth fighting for.

At MicroCapClub, our #1 priority is to find great companies early, but our long-term mission is to bring credibility and respect back to the microcap space. We intend to do this by relentlessly executing on these five core principles:

  1. We will educate the masses on the merits of microcap investing.
  2. We will attract quality investors and participants into the microcap space.
  3. We will project quality in everything that we do.
  4. We will learn and collaborate with each other to become better investors.
  5. We will strive to make a positive value added impact on the companies we interact with and invest in.

Six years ago, we focused solely on the US microcap market, and then we expanded into Canada. Now we are entering the UK and Australia. Our message is spreading.

The microcap space is worth fighting for. If you believe this to be true and in our principles above, then join us and lets make a difference together.

Ian Cassel

MicroCapClub is an exclusive forum for experienced microcap investors focused on microcap companies (sub $300m market cap) trading on United States, Canadian, and UK markets. MicroCapClub was created to be a platform for experienced microcap investors to share and discuss stock ideas. 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. If you enjoy the search for the next great company, 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 2

  1. Hi ian
    How about entering india ? you do have a lot of indian fans and there are over a billion people over there 🙂

    regards
    rohit

    1. Post
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