The Capitalist Investor - Episode 83

Most novice investors want instant results. When they see that the stock is moving in an upside direction after they bought it, they conclude that they have bought the right stock. The destructive habit of instant results has led investors to another destructive habit – instant gratification. Investing for a solid retirement isn’t gambling on meme stocks. But in this week’s episode, Mark and Derek discuss how Strategic Wealth Partners research companies that may have that 10x abilities in the future.

Outline of This Episode

  • [2:40] Sourcing those hidden gems
  • [9:20] Source the names
  • [14:34] Trading vs Investing
  • [20:45] Do your Homework

Sourcing those hidden gems

Some of the diamonds in the rough and hidden gem names are the ones that aren’t on everyone’s radar, not a lot of people are talking about them, probably zero or maybe just a little institutional coverage, but if you’re an investor and you are looking to potentially hit a home run within a small sleeve of your portfolio, we think this is where you have to look. They aren’t easy to find, and a lot of these stocks are micro-cap stocks that are publicly traded or “over the counter” types, but what are some of these stocks and what’s our process? Listen to find out.

Source the names

How should you go about sourcing these names and ideas? We figure most of our listeners are not institutional investors and don’t have access to that research. Let alone a good portion of these names not being covered by any institutions, we check on social media and the internet for a good starting point. This will help you gather ideas and look for the next big thing. We suggest thinking about what niche or space that you want to get into. What moves quickly and has potential to becomes a 3x, 5x, or even a 10x on your money? Listen to find out how we approach the process and feel about short term versus long term investing.

Trading vs Investing

Even though the focus of our show is not on investing in something that is going to be a short term or highflyer because of the diamond hands movement, but rather the stocks that we think can grow quickly, maybe within the next year or two, and are also ones that we are comfortable holding onto for the next five plus years. We believe in companies with a good, solid, longer term, fundamental growth story.

We do feel it’s important to do some sourcing on Reddit, Twitter, free apps, and sites that have information on those meme stocks and lesser-known names. We also take a look at Wall Street Bets most mentioned stocks. A website updated every 24 hours that we find insightful, (and NOT to be used as solid research for investing purposes), we suggest checking out Memestocks.org. It’s a great page and interesting, and even though the above isnt what we are about, we think it’s a good place to exchange ideas. Listen to find out what services we prefer and how controlled discussions and research among those services, help us source our good ideas.

Do your homework

With the S&Ps average return over the last decade, you are going to want to make sure you are mixing in some of these names to compliment your core holdings, but do not put all your eggs in one basket. Come up with a list and invest the proper allocation. Do your research and due diligence, because there is a chance that nobody covers it, and you can’t piggyback off of someone else’s research. Make sure you learn about that company and their process, their products or service, their management team, maybe you can get your hands on a research report. Be comfortable with their growth story, maybe find a stock screener, figure out an entry point, get organized and decide what price point works for you. But most importantly have patience, you will gradually get better at sourcing, researching, and doing your homework. The best mistakes are the ones you learn from. This is a learned process over time.

Connect with Derek Gabrielsen

Connect With Mark Tepper

Send your questions and comments to us at info@SWPConnect.com

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Episode 20:
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Episode 36:
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Episode 52:
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Episode 68:
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Episode 84:
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Episode 5:
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Episode 22:
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