Keep It Simple
Many in finance like to sound smart by making things complex. These people usually work for other people. Successful people simplify things.
MicroCapClub articles tagged Education, including microcap investing research, education, and member insights.
Many in finance like to sound smart by making things complex. These people usually work for other people. Successful people simplify things.
Microcap companies are illiquid and volatile. Stock price moves of +/- 10% on a weekly or even daily basis are the norm. Most investors are OK with volatility as long as it’s only to the upside, but become unnerved when it occurs to the downside.
The majority of microcap success stories were first able to dominate a small niche market that was expanding. Once they dominated one small market, they used what they learned to enter additional or complimentary markets.
In this article I lay out the major pitfalls that I have found so that you don't have to fall into them.
If you want to find great companies early, you need to find great leaders early.
Thomas Phelps emphasizes the importance of vision in stock selection. He writes that to make money in stocks you must have “the vision to see them, the courage to buy them and the patience to hold them.