X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
How Small Caps Can Change the Way You Eat, Sleep, and Drive - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Apr 11, 2018 - How Small Caps Can Change the Way You Eat, Sleep, and Drive

How Small Caps Can Change the Way You Eat, Sleep, and Drive
Apr 11, 2018

Do you believe small caps can make you serious money in the stock markets?

I'm talking the kind of money that changes lives. Changes the way you eat, sleep, drive, and practically every other aspect of your life.

If you're still thinking, let me tell you that they can.

When you invest in the small cap space, your odds of seizing multibagger stocks go way up.

There are two reasons for this.

One is small cap stocks lack liquidity.

Unlike blue chips, they are not heavily traded, which is actually good for retail investors.

You see, small caps are relatively unknown and less money chases them. Big investors can't invest significant money in them because of their low liquidity. If they do so, their buying and selling itself will move prices too much - and they won't remain an attractive proposition.

But as these small businesses grow and prove themselves, big investors and funds start paying attention. The demand for the stock goes up. Many investors bid for the limited number of shares on offer. And this drives the stock price to giddy heights.

All this means huge gains for a small, early-stage investor.

--- Advertisement ---
Should you be afraid a Market Crash?

The recent past hasn't been good for investors globally. The market has entered a meltdown mode.

But we think crashes are necessary, from time to time, for the healthy functioning of markets.

In fact, this Market Crash gave me an opportunity to share a Secret which could guide you retire early and wealthy.

Click here to find out… how to take advantage of this Market Crash.
------------------------------

The other reason is the high growth potential of small cap stocks.

Unlike big businesses that have already matured, small caps are at an early phase in the business cycle.

They have huge room to expand which makes the growth potential of quality small caps enormous.

Imagine two companies operating in the same industry having similarly solid fundamentals. Then, in the long-term, the company which grows faster will generate more earnings which will eventually drive up the stock price.

The key then is to identify these companies before the big investors, assess their growth potential, and figure out how much to pay for the growth.

That's how we've discovered some serious small cap gainers like...

Page Industries, that went up over 5,900% in the 9-odd years we've been serving Hidden Treasure subscribers with recommendations, or eClerx that went up 2,500%...

On an overall basis, the Hidden Treasure service has garnered 30% compound annual growth rate since its inception in February 2008.

That's beating markets almost three times over!

Sounds unrealistic, but that's how your fortune rolls.

Not all small cap stocks can turn out rewarding. Some will be value traps and some will be outright value destroyers. But the ones that do, will blow the losers out of the water and turn out to be your real wealth creators.

So, keep on the lookout for such small cap stocks and you can rake in the moolah...

Good investing,
Monish Vora

PS: Hidden treasure is Profit Hunter's best-selling service - with a track record that is enviable by any measure. You cannot consistently build serious wealth without small caps in your portfolio - so make sure you are on track with your smallcaps. Sign up for Richa Agarwal's small cap service now.

Monish Vora

Monish Vora is a keen student of the markets and shares his observations through his clear and concise commentary.

Equitymaster requests your view! Post a comment on "How Small Caps Can Change the Way You Eat, Sleep, and Drive". Click here!

  

More Views on News

Two Meetings That Nailed the Idea of Owning Brilliant Smallcaps Without Buying Them (The 5 Minute Wrapup)

Mar 22, 2018

Certain blue chips hold the potential of delivering returns comparable to small-cap stocks. With these stocks, you can get the best of both worlds.

What They Forgot to Tell You About Sensex at One Lakh (Profit Hunter)

Nov 29, 2017

Stocks that could beat Sensex returns in the long term.

How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

Jun 10, 2017

Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

Should New Investors be Buying Smallcaps at All? (Profit Hunter)

Apr 21, 2018

If you can find the right small caps, you can make returns even Warren Buffett might be jealous of... Heed his words, and play with mosquitoes.

Are Multi-Asset Funds For You? (Outside View)

Apr 20, 2018

PersonalFN describes the traits of multi-asset funds and explains who should invest in them.

More Views on News

Most Popular

Discovering Best Smallcaps

Here are some ways to identify small cap stocks with strong moats, good fundamentals and solid managements that are available...

Why 2.8 Crore Indians Applied for 90,000 Jobs in Indian Railways(Vivek Kaul's Diary)

Apr 16, 2018

This is an excellent example of the huge underemployment problem in India, which the Modi government refuses to acknowledge.

If Your Broker Calls You, Bang the Phone Down!(Smart Contrarian)

Apr 10, 2018

I'm going to tell you certain things about the inner workings of the industry so that you know why his advice is likely to be at best junk, and at worst dangerous.

How to Pick Great Stocks with Rajeev Thakkar(The 5 Minute Wrapup)

Apr 9, 2018

Rajeev Thakkar tells us how teachings from Vipassana can help you became a better investor.

How Small Caps Can Change the Way You Eat, Sleep, and Drive(Sector Info)

Apr 11, 2018

How you can increase your odds of seizing multibagger stocks and rake in the moolah by investing in small cap stocks.

More

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Apr 20, 2018 (Close)

MARKET STATS