STREET DOGS: Small caps — an area where you can maybe find an advantage
The beauty of penny stocks is that sometimes they "grow up" and become mid-cap stocks, multiplying in value hundreds of times over, making many very wealthy. — Anon In my experience, it’s harder for a $30bn company to add $10bn in value than it is for a $3bn company to add $1bn in value. We’ve bought bigger companies in the past, but I can’t say we’ve been very good at it. It’s just too hard to have an informational edge. — Robert Lietzow Our strategy from the beginning has been to focus on areas where we believe we can have some advantage, where there is a greater prevalence of irrationality and higher likelihood of mispriced assets. For us, that’s not going to be investing in Microsoft or in some quantitative strategy against a room of Goldman Sachs’s PhDs with Cray supercomputers. We have to be guerrilla investors, lying in the weeds and picking off opportunities among the obscure and mundane. That usually means small, ignored companies that no one else is talking about. — James ...
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