Ian Cassel is the founder and owner of MicroCapClub. Ian is an experienced microcap investor with a 20+ year track record of investing in intelligent fanatic-led businesses.
Kevin Martelli, who is part of the MicroCapClub community, has given me permission to republish a memo he wrote 18 months ago which I thought to be very thought provoking and applicable to microcap investing.
We all like to talk about the stocks we own. If you are anything like me, you also do a
Ron Wallace writes, “We promote from within to ensure that the company can pass on our legacy and culture seamlessly from one generation to the next.”
On February 1, 2009, Todd M. Cleveland became the CEO of a $5 million market cap microcap called Patrick Industries (PATK). In just seven years, he would transform the company through acquisitions and organic growth into a $61 per share, $940 million market cap, compounding machine.
A microcap investor’s biggest risk is dilution, and a microcap’s worst enemy is a management team that wants to get bigger at any cost.
DGHM & Co recently published a white paper, Microcaps: Value Uncovered. In the white paper, they illustrate that Microcaps have outperformed Large Caps since 1926.