One of the most lucrative and highest yielding areas of investing is finding quality companies in the small cap market. The difficulty with investing in this space is the companies often lack stability and market dominance to make some investors comfortable. On this episode, we talk to a leading expert and former hedge fund manager that has invested in the small business space over three decades. Eric Cinnamond currently runs his own blog where he provides a detailed analysis of all the conference calls and small cap companies he follows (a couple hundred businesses).
In this episode, you’ll learn:
- Why small cap investing can be profitable for the right type of investor
- Why you should always question where you are in the profit margin cycle
- Why money managers are 100% invested in a market 80% of them believes are overvalued
- Why cyclical stocks are hated and yet can be extremely profitable
- Ask the investors: How do I value stocks with declining net income?
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