Educational articles written by full-time investors, including business breakdowns, interviews, and presentations.
Educational articles written by full-time investors, including business breakdowns, interviews, and presentations.
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.
All Great Companies Started As Small Companies
Over the next 15 years, Selim Bassoul would transform Middleby Corporation from an unfocused, cultureless, slow moving, sleepy food equipment manufacturer into a compounding machine.
Andrew Lanyi didn’t have a job, money, or speak any English when he landed in New York City, but thirty years later Lanyi would be considered one of the best stockbrokers of his generation.