Good News & Bad News, page-585

Sort of nails it this article. Staring us in the face and a reason why I ignore all the crap from many posters here and the likes of Citi. Looking at below, I’m currently at around the $3 mark. I fully expect in 10 years to have a 5 bagger from here and I don’t need to lift a finger. IMO. That would make it a 15 bagger for myself. I have a substantial amount invested so no need to say what that means for myself and family.

Here is what a multi-bagger looks like over several years: $1 – $2 – $2 – $3 – $2 – $3 – $4 – $6 – $6 – $12$1 to $12 in 10 years. This is a 28% compounded annual growth rate (CAGR). This is a phenomenal return. Investors love to consolidate success down to one number. The bad thing about representing growth as a CAGR is it smooths out the volatility and pain to achieve it. High CAGRs aren’t smooth linear lines ascending to heaven. They are rollercoasters. You will have to hold while the stock doubles in a year. You will have to hold as the stock pulls back 50% from its highs. You will have to hold as the stock goes nowhere for months, quarters, maybe years, as fundamentals backfill into a higher stock price. You will have to hold as expectations get too high or management goes through growing pains. You will have to hold as the stock is cheap and expensive. You will have to hold while the stock is loved and hated by other investors. Through this war of emotions and volatility you still need to determine which companies deserve to be held. Portfolio turnover is the price of progress. In many ways microcap investing is like trying to find future NFL quarterbacks while they are still in high school. It’s a tough business, but it isn’t impossible. You can spot high integrity talent even at a young age. You won’t be right all the time. But you have to be willing to make smaller bets and follow their progress. If they develop in the right ways, you buy more. If they evolve in the wrong ways, you sell and move on.


https://microcapclub.com/2021/01/always-be-thinking-ahead/