How to Invest in Small Companies
Julie Stralow at Morningstar wrote an interesting article last week on how to invest in small companies. She notes that small companies often grow faster than large companies, and that by virtue of their size, small companies are often not as followed by analysts, leading to information gaps and mispricing. The difficulty with investing in small companies is the potential for increased risk. It is also difficult to identify small companies with sustainable competitive advantages.
Julie notes four small cap stocks that are both attractively priced and that she believe have sustainable competitive advantages (i.e. wide moats). Her list is as follows:
- DeVry (DV)
- Federated Investor (FII)
- Foward Air (FWRD)
- Strayer University (STRA)
I hope to find some time this week to take a closer look at these four attractive stocks.
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hi george,
Can a non-american resident take part in private transactions of US companies?
I am a private investor based in the United Kingdom. I focus on seed capital, early-stage, start-up, ventures, LLC and all round completion and expansion of investment projects that need funding. I am interested to invest in your company on a long-term business relationship. If this is alright with you kindly get back to me with more details about your company.
Dr. Frank Morgan.
(Individual/Angel investor)