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Be a Better Investor Part II: Why invest in small companies?
By Dr Wealth  •  December 19, 2019
I don’t know about you or what the markets think. Personally, when I invest, I’m not looking for 20%, 30%, or even 100%. I’m looking for 3x, 5x, 10x the returns on my money invested. In order to achieve such returns, I go to the most ignored, the most hated, the smallest, uncovered places of the market. I frequently go over companies with less than $300 million in market cap and I almost always (nowadays at least) look at companies that are sub $100 million in market capitalisation. The reaction of some of the friends I have working in the financial sector is often negative. Some call me nuts. Some call me greedy. Some call me a risk-takeroverly aggressive. The list goes on. Funny enough, I don’t think I’m wrong. An endless fascination of street investors for a majority of the crowd at least) seem to be on the big stocks. For whatever reason, a lot of folks feel safety and assurance investing in the biggest names via brand recall. How do I know?...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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