No. of Recommendations: 10
Microcap investing refers to the practice of investing in companies with very small market capitalizations, typically those that are valued at less than $500 million. There are several potential benefits to this approach. First, microcap companies may offer higher growth potential than larger, more established companies, since they have more room to expand and grow their businesses. Second, microcap stocks may be undervalued by the market, presenting an opportunity for investors to buy them at a discount. Finally, investing in a diversified portfolio of microcap stocks can help to mitigate the inherent risks of this type of investing, such as the potential for fraud and the lack of liquidity in the market for microcap stocks.
With less information available about these firms, there can be an emphasised important of trust in, and excellence of, management. In this regard, the investment has some parallels with Angel investing.
What Microcap purchase ideas do you have? In what manner do you incorporate these (mixtures of duds and high-flying fireworks) into your portfolio?
Do you treat your ownership as owning a business, and invest over the very long-term, or do you move in and out of these microcap companies?
I encourage you to take the time to leave shrewd posts to this board to share you excellent ideas and research findings with others. Within the gates of Shrewdom, you'll observe a merry spirit, and many waiting for your shrewdest observations so that we can collectively grow and prosper.
- Manlobbi
