I go through microcaps A-Z to find the cheapest stocks in the world.
Joined December 2019
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The shoes are awful now that is the problem. When I needed new basketball shoes I tried a bunch and couldn't even get my foot in half of them.
Imagine telling someone 5 years ago they’d see an almost 80% drawdown in $NKE over the following 5 years.
Buying a great business and holding for years is much harder than people think.
Of course it is easy to say in retrospect when it works out.
Peter Lynch had 300% turnover per year in the early years of the Magellan Fund. Joel Greenblatt had similar turnover at Gotham Capital. Even Warren Buffett’s public company portfolio ranged between 50-100% turnover per year during his first three decades. In fact, contrary to what most believe, many of the greatest long-only investors had their best performance when they had higher rates of turnover in their portfolios. And these were investors that invested in larger, more established businesses where low turnover is much more achievable.
We invest in small emerging companies. Microcap companies evolve in different ways. Not all of them are good ways. We can’t say at the beginning, “I’m going to hold this stock for 1-5-10-40 years”. No, we are going to hold it as long as management executes and constantly compare them against other opportunities. We might hold them 3 months, or it could be 10 years. If I’m being honest, most companies only deserve to be rented. Ownership is earned. The quickest way to go broke in microcap is buy and forget. Buy and hold forever only works if management executes forever.
If a stock is being presented at a "microcap conference" I am not interested.
I got to do my first stock pitch yesterday. It was for the MS Microcaps Summer Virtual Conference. If you want to check it out you can click on the link. I chose to do it on one of the companies I’ve held onto the longest, $BUKS. Here’s the presentation slides that I used and the full video of my pitch along with the Q&A should be up on MS Microcap’s Substack. There’s a lot of other cool companies that presented over there too and would encourage my readers to check it out. Today is the last day to tune in Live.
What happened to Walmart in 2023? It's really taken off since then, between 18 and 23 it was roughly a double
Not advocating to pay up here. But hear me out.
In Oct 2018, Walmart traded for 50 times earnings. The stock was 33$ per share.
Say you bought it. And forgot to sell it.
Between then and now, a lot happened. Pandemic, unseen inflation, tariff wars etc.
You would be sitting at 236% total return. 16.8% cagr, outpacing S&P.
This is after overpaying for a high quality business.
Obviously I m cherry picking it but my point is investment is not easy. But sometimes we don’t have to try and be too intelligent.
The stocks where management won't talk to anyone can be the most interesting.
IMO investors who say speaking with management isn't useful usually:
a) have never bothered speaking with many management teams (they need more reps)
b) don't do enough diligence before the call, so it's easy for management to steer them in the direction they want (the type of investors who spend the first half of the call having management walk them through the deck)
c) don't speak with the same management team often enough, or don't spend enough time with them if it's a one-off call (1x30min won't cut it)
That said, observing from the sidelines can work wonders too, especially if the company also holds earnings calls.
If you're good at investing and can compound at high rates over 20-30 years it's literally impossible not to get rich. Even if starting with a small amount.
$TAIT has performed well since my writeup back in February. Cool to see Tim owns it!
$TAIT Taitron is a great example of why I will buy something even when it is tiny, and it is. Deregistration drove share price $2.50 to $1.00 to $1.20 range. Book was $2.50 per sh. Net cash $1.50 per sh. Real estate of $1.50 per share. Yield 14%. Earnings were temporarily affected by tariffs. Announced dividend increase today.
Just published my new writeup on an OTC microcap that has undergone a meaningful transformation which in my view is not yet reflected in the market price.
Over the past two years, an activist replaced the entire board with major shareholders. In addition, they sold an unprofitable subsidiary which combined with improving industry conditions increases the likelihood of an earnings inflection which the market is not pricing in.
I am writing up a super cheap company on the OTC that has flown completely under the radar.
Last year an activist replaced the entire board and leadership team with large shareholders who’s interests are aligned with investors. They have already taken actions to increase value including selling a cash-burning subsidiary which removes a major drag on profitability.
In addition the company has significant operating leverage and improving industry conditions make an earnings inflection appear likely.
I’ll send the name to anyone who's interested.
The stock market today is crazy. You have Apple at 40x earnings and SpaceX at 116x sales.
Then you go down to the OTC and find a growing company trading for 2x earnings with half the market cap in cash.
It’s like everyone forgot small companies existed.
My portfolio return for the first half of 2026 was +22%.
Performance on such a short time frame doesn't hold much importance. I am satisfied with the results, and even more important to me is that now essentially all of my biggest positions/winners are self generated ideas that come from going through every microcap on an exchange.
Here are my thoughts on the year, plus a look back at all of my writeups since 2025.
First Hartford Corp. $FHRT is a real estate developer that has been operational since 1909 and is controlled by the Malkin family. They develop commercial and multifamily properties as well as ground up projects and are a preferred developer for major chains such as CVS and Cumberland Farms. The company trades slightly below my NAV estimate and at roughly 10x normalized earnings.
Here is where it gets interesting. Over the past year, the company has been transitioning to a partnership model for new developments, where they bring on large institutional partners to put up the capital while First Hartford earns developer fees and long term management fees. From an investment standpoint this is a more attractive business model compared to traditional development due to the recurring revenue and asset-light nature of the business. Over the past year partnerships have grown to be 20% of the company’s total assets, and if new projects continue at this pace it won’t be long until the majority of assets are operated under this partnership model, which could result in a rerating of the stock in line with its improved earnings power.
Disclaimer: I own shares of FHRT