February 20, 2013 admin

Why Investors in MicroCaps Shouldn’t Time the Market

When it comes to value investing, patience isn’t just a virtue; it’s a necessity. This is especially true for microcaps, which is really categorized as value investing to the extreme. While large cap and blue chip stocks may be undervalued by the market at times, it is rarely to the extent of those in the microcap space.

With little-to-no media coverage or attention from the larger investment community, many of the opportunities in this arena may take long periods of time before their actual value is realized. The misconception is that microcaps is where fortunes are won and lost overnight. In reality, it can take months or even years before a small company is recognized by investors. When it does, however, the take-off can happen very quickly.

Microcaps expert Stephen Kann shares thoughts on the risks of market timing and how investors should approach opportunities in this space instead. Read the full article on Equities.com.