Thursday, April 14, 2022

Why Microcaps Are Not for Sissies

Dear Loyal Reader,

Amazon, Amgen and Berkshire Hathaway are all large-cap companies.

But they didn't start out that way.

In fact, they started out as microcap companies…

  • In 1965, Berkshire Hathaway had a $19 million market cap.
  • In 1985, Amgen had a $72 million market cap.
  • And in 1997, Amazon had a $442 million market cap.

They didn't stay small for long, though…

Today, Amgen has a $127 billion market cap. Berkshire has a $700 billion market cap. And Amazon has a $1.5 trillion market cap.

You didn't need much to make life-changing returns from them…

  • A $1,000 investment in Berkshire in 1965 would be worth $28 million today.
  • A $1,000 investment in Amgen in 1985 would be worth $2.3 million today.
  • And a $1,000 investment in Amazon in 1997 would be worth $1.5 million today.

Over a long time frame, those returns are nothing short of amazing.

But the hardest part wasn't just finding these great companies when they were small.

It was being able to "ride the buckin' bronco," as Charles Mizrahi likes to say…

You needed to be cool, confident and in control while these stocks went through sharp, short-term downturns.

Since Amazon went public in 1997, the stock price has dropped more than 90% on more than one occasion. In fact, it's been off 75% from its highs several times.

The same thing has happened with Amgen. Since its initial public offering in 1983, the stock price has plunged more than 75% from its high. A handful of other times, it was down 60%.

And even Berkshire — led by legendary investor Warren Buffett — saw its stock price decline more than 50% three times since going public.

Bottom line: If you wanted amazing returns, you would've had to sit through the rough rides to the downside.

Because there are no free lunches — especially when it comes to microcaps…

Wall Street hasn't come up with a way to make 10X returns without downturns.

So, if you want to make astronomical gains in microcaps, you need to do three things…

  1. Buy with confidence.
  2. Only invest what you can comfortably afford to lose.
  3. Ignore the short-term downturns by focusing on the long term.

Investing in microcaps might not be a walk in the park. But Charles has your back.

To learn more about his new service, Microcap Fortunes, click here now.

Click here if you are unable to see the image.

Regards,

Turn Your Images On
Lina Lee
Senior Managing Editor, Banyan Hill Publishing


 


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