Motley Fool Money Small Caps w/ Strong Brands
Jan 14, 2023
Bill Mann, Director of small-cap research at The Motley Fool, dives into the world of promising small-cap stocks and their unique opportunities. He explains how to strategically allocate investments in smaller companies and highlights key metrics to watch for success. Mann emphasizes the importance of inside ownership and financial health, while also addressing common investor biases. He shares insights on overlooked businesses like a real estate brokerage and a Bitcoin-holding firm, showing how stable companies can thrive even in challenging markets.
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Small-Cap Opportunities
- Consider small-cap companies, often overlooked by institutional investors.
- Look for established, smaller companies, not just startups.
Small-Cap Investing Approach
- Don't overthink small-cap investing; start simple.
- View market downturns as opportunities to find undervalued companies.
Key Metrics for Small Caps
- Scrutinize stock-based compensation relative to revenue.
- Look for companies with revenue growth and manageable debt.