The Micro Cap Investor: Strategies for Making Big Returns in Small Companies (Wiley Trading) Hardcover – January 24, 2005

Good Book.

Should've taken one of the reviewers advice. It's got very little on micro cap investing.

A lot of information in this book can be applied to companies of all sizes. What is special about micro-cap companies is that they are not followed closely by big institutions because they are simply too small. If a financial institution has a $1 billion under management, analyzing a micro-cap company would be a waste of time. These institutions need to invest in bigger companies. Because of this, small companies are not followed closely by analysts and therefore, the market is more inefficient, allowing investors to profit from mispriced securities.The author provides different sources of information for analyzing these companies. They include: the company, competitors, customers, suppliers, trade associations, industry professionals, legal documents, and employees. Investors can use these sources and gain information advantage over other market participants. Even Warren Buffett once said that if he had less money, the universe of companies that he could invest in would be wider, meaning that it would include smaller companies. This book does a pretty good job arguing that micro-cap investing can generate above-average returns.- Mariusz Skonieczny, author of Why Are We So Clueless about the Stock Market? Learn how to invest your money, how to pick stocks, and how to make money in the stock market

if you have ANY general knowledge of investing this book will serve as a total waste of your money. covers basic textbook investing concepts that are relevant to all caps...nothing special about small caps. limited small cap specifics are self evident. case studies are nothing more than timeline summaries of readily available public information.this book went straight to the garbage when i finished.

Actually, in some ways I hate to tell others about this books, as obviously not that many people have read it. The less people who read this book, the less competition for me in the microcap arena. This is really a well-researched book. For example, it mentions that the volatility of a stock portfolio keeps dropping until microcap stocks make up almost 1/2 of it. The author also mentions that this is not possible for managers of huge funds to invest this way--but it is possible for the small investor. I think there are only a very few books on microcap investing, and only one other has relatively good reviews. This book, unlike others, is not about making it big with penny stocks--but rather about microcap investing--which by different definitions just means that the capitalization of a given firm is under a given amount. At an rate, this is a field where the small investor can make money that is not available to managers of mutual funds.