Our Service Microcap Millionaires Has Done Everything Wrong! - Profit Hunter by Equitymaster
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Our Service Microcap Millionaires Has Done Everything Wrong!

Apr 17, 2018

Taha Merchant, Research Analyst

Being part of the Microcap Millionaires team with Rahul Shah has been exhilarating experience.

You see, Microcap Millionaires is no ordinary service. It does everything 'wrong'.

Everything about it seems to fly in the face of the traditional approach to stock picking.

It recommends 'risky' microcaps... Yet is also has a large fixed deposit component and has shown tremendous stability in its returns since inception.

It picks stocks discarded by most as 'sure losers'... Yet it has an enviable track record with nearly 90% of its 35 positions closed in the positive:

Company Reco. Date Reco. Price (Rs) Closing Price (Rs) Gain/Loss (%) Closing Date
TITAGARH WAGONS 20-Mar-14 102 658 545.4% 23-Feb-15
PURAVANKARA 20-May-16 48 146 206.0% 8-Dec-17
LEEL ELECTRICALS LTD 21-Apr-14 64 177 175.9% 20-Mar-15
HIL LIMITED 20-Feb-14 242 654 170.1% 23-Feb-15
NAVIN FLUORINE 20-Feb-14 258 696 170.0% 23-Feb-15
TECHNOCRAFT INDUS. 21-Apr-14 93 233 150.0% 23-Feb-15
KANORIA CHEMICALS 20-Mar-15 36 88 145.7% 19-Oct-16
BIRLA CORP 20-Mar-14 241 566 134.9% 20-Aug-14
IFGL REFRACT. 20-Feb-16 81 182 125.9% 20-Dec-16
CENTURY ENKA 18-Mar-16 171 358 109.9% 20-Mar-17
MAH. SEAMLESS 20-Mar-15 200 420 109.8% 20-Jul-17
RENAISSANCE JEWEL 20-Feb-16 124 258 108.3% 8-Dec-17
KAKATIYA CEM 20-Feb-15 114 236 106.6% 4-Apr-16
MANGALAM CEMENT 21-Apr-14 135 269 99.6% 20-Mar-15
GUJ.AMB.EXP. 20-Apr-16 48 92 91.0% 20-Jan-17
NALCO 20-Feb-16 33 59 76.4% 20-Dec-16
ARIES AGRO 20-Sep-16 102 176 73.3% 20-Jan-17
SWELECT ENERGY SYSTEMS 21-Apr-14 253 434 71.7% 20-Apr-16
GRAPHITE INDIA 20-Feb-16 66 112 70.5% 20-Mar-17
DREDGING CORP 20-Feb-15 421 684 62.5% 20-Jun-17
NALCO 20-Mar-14 35 56 59.4% 20-Jun-14
ARCHIES LTD 20-Apr-16 22 34 57.4% 20-Apr-17
BHARAT BIJLEE 20-Mar-14 446 675 51.4% 20-Jun-14
DREDGING CORP 20-Feb-17 457 684 49.6% 20-Jun-17
TECHNOFAB ENGINEERING 20-Feb-15 134 193 43.7% 20-Feb-17
GUJ.IND.POW 20-Mar-14 59 79 34.3% 18-Mar-16
BHEL 18-Mar-16 74 84 13.7% 20-Mar-18
HCL INFOSYS 20-Mar-14 37 42 12.2% 18-Mar-16
TARA JEWELS 19-Aug-16 35 39 10.9% 19-May-17
GUJARAT ALKALIES 20-Jun-14 197 217 10.3% 20-Jun-16
GUJARAT STATE FERTILIZERS 20-May-14 74 78 6.0% 20-May-16
GLOBUS SPIRITS 20-Jun-14 81 65 -20.3% 20-Jun-16
SAIL 20-Sep-14 75 48 -36.4% 20-Sep-16
PENINSULA LAND 20-Mar-14 31 19 -38.7% 18-Mar-16
VENUS REMEDIES 20-Feb-14 219 92 -58.2% 20-Feb-16
Source: Equitymaster

It is most irregular in making recommendations... Yet it has been able to load up on stocks at, which have turned out to be the shrewdest of the times. Especially early 2014, and early 2016.

It doesn't meet company managements, do quarterly result analysis, forecast economic conditions, or even make financial projections... Yet it has very uncannily picked out dozens of turnaround stocks.

Microcap Millionaires is a study in paradoxes.

When we started it in 2014, Rahul quickly picked me to be part of its team.

This wasn't a coincidence. The service's philosophy is inspired by Benjamin Graham's teachings, and Rahul knew I'd read Graham's two most important books - The Intelligent Investor and Security Analysis - multiple times over.

Now Graham's books can get quite heavy! I think the only reason I managed to make it through them is that I'm extremely passionate about investing...

I've been sharpening my approach to stock picking for over a decade now. I hate forecasts and stock market chatter, and cherish independent, logical thinking.

Conservative to the bone, my biggest attraction to the stock market is the opportunities it offers to jack up returns while decreasing risk (equipped with Graham's teachings, of course!).

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Buy cheap and sell dear is my mantra - no 'hold stocks forever' for me.

Whenever the market crashes, you'll likely find me grinning from ear to ear.

I'm constantly on the prowl for deep bargains. Nothing makes me happier.

For me, investing gurus don't get any better than Graham.

After having meditated over his teachings all these years, I couldn't be more certain that those who truly bother to read and understand Graham can make pots and pots of money in the market.

Microcap Millionaires results are a testament to this.

For all the 'wrong' that the service does, it has kept the moolah flowing to its subscribers like none other!

Here's to many more years of money-making, and market-bashing...

Cheers,
Taha Merchant
Taha Merchant
(Research Analyst)

PS: Apurva Sheth, editor of the Profit Hunter's premium newsletter, is not only confident that Sensex will hit 100,000 - but can tell you exactly which stocks will take it there. To read his brilliant report, click here to learn how you can access it.

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