Why not Microcap Investing for us?

What sparked our initial interest in Microcap stocks?

(1) Small beats big.

Source: “Microcaps: Value Uncovered” by DGHM & Co

(2) Value is more important in Microcaps than Growth.

Source: “Microcaps: Value Uncovered” by DGHM & Co

(3) Even more important is Quality.

Source: “Microcaps: Value Uncovered” by DGHM & Co

(4) Microcaps tend to have much higher Insider Ownership.

Source: “Microcaps: Value Uncovered” by DGHM & Co

Why the Outperformance of Microcap Stocks?

Source: “Microcaps: Value Uncovered” by DGHM & Co

Why then not Microcaps Investing?

(1) Poor Liquidity

Source: “Microcaps: Value Uncovered” by DGHM & Co

(3) Top Dog in Small & Niche Markets

(4) High attention required.

(5) High Portfolio Turnover

Closing Words…

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Eugene Ng

Eugene Ng

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Author | Investor | Founder & CIO Vision Capital | Investing in businesses that reflect our best vision for our future