If you find a well-run cash generative micro/smallcap, share this article with the management team. Subject: Just Do This!
If you’ve been a stock picker for 10+ years a small part of you always wonders if the last big win you had was your last. You must not believe that.
With every investment, there are things you can’t control, so you need a plan for reacting to the unexpected.
It's the first 11 years when Monster Beverage was still a microcap that are the most instructive.
When I was a private investor, I was super concentrated in 2-3 stocks. All it took was one or two big winners in any given year to have a phenomenal year which I would define as a portfolio return of 75%+.
When I reflect on all my big winners and most of the top performing companies profiled on MicroCapClub - EVERY SINGLE ONE was an ugly duckling at one point.
Over time you realize finding ideas before others often means finding ideas with others. Stock picking isn’t a zero-sum game.
I’ve found over the years that potential intelligent fanatics can be put into four categories.
A good rule of thumb is to be quieter than you want to be. Don't give people a reason to root against you. It's an asset when people can't tell whether you are winning or losing.
Microcap gets little attention despite being the small island of investing that produces superinvestors.
