The Meb Faber Show - Better Investing Ian Cassel on The Art of Microcap Investing: Identifying Hidden Gems | #542
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Jul 19, 2024 
Ian Cassel, Founder of MicroCap Club, talks about the microcap sector, advantages of micro-caps, and characteristics of multi-bagger stocks. He shares his investment journey, selling strategies, and current holdings. Ian also discusses analyzing the current micro-cap landscape and his most memorable investment.
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Microcap Stocks Defined
- Microcap stocks typically mean companies with market caps under $500 million USD.
- Institutional interest varies, with smaller microcaps under $50 million usually less institutionalized and less covered.
Microcaps Misunderstood
- Microcap stocks often carry a negative stigma from associations with penny stock scams.
- Yet, many profitable microcap companies exist and have historically been where great investors started.
Microcaps Yield Many Multibaggers
- Most multi-bagger stocks originate from the microcap segment and are profitable.
- Consistent growth in small profitable companies can generate 10x returns without needing to find the next tech unicorn.