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Author: Admin | 2025-04-27
Get 60% OFF One Year of Microcap Confidential – plus you’re entitled to more than $10,899 worth of research, recommendations, and FREE bonuses by acting now – at the special price of $2,000.Excluding banks and insurance firms, more than 100 companies in the U.S. have a market cap greater than $50 billion. These mega-cap names are world-beating businesses that dominate their industries.Some investors talk about how “network effects” and “scale” mean these companies are unstoppable, and they pile into the stocks. But most people forget there were many successful big companies before the headline-dominating “FAANGs” – Facebook (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Google parent Alphabet (GOOGL).Many of those historic big firms didn’t survive… no matter how bullish investors were about their “perpetual” economic moats.Just when investors start thinking large companies are going to remain big forever is often when they’re most ripe for disruption. And today, those 100 mega-cap companies are a prime example…Of these, 47 of them were microcap companies – with a market cap less than $1 billion – at some point in their lives. Nineteen of those 100 names were microcaps as recently as in 1990.An investor who bought software company Salesforce (CRM) when it broke a $100 billion market cap has seen the firm grow by 65%… But someone who bought Salesforce in 2004 when it was a less than $1 billion microcap name has seen the stock rise by 59 times. If he put $10,000 in the stock in 2004, it’d be worth $608,000 today.Back in 2002, Netflix was a $115 million microcap stock… Today, its market cap is more than $215 billion.Even Amazon was a $400 million microcap stock at one point in 1997, before it became a $1.5 trillion behemoth.While some investors focus on those mega-cap names and hope they can just keep on getting bigger, savvy investors look for smaller companies that can get big. And the best place for individual investors to find those ideas before Wall Street starts to pile onboard and cause stock prices to take off is in the microcap space.Big institutional investors are just too large to invest down here, because the stocks aren’t liquid enough for them to put money to work. On the other hand, individual investors who can do sound research, identify the next wave, and avoid companies with more questionable backgrounds can therefore build positions before these stocks start to
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