Small Cap Portfolio: 1 New Buy - February 23, 2024

Adding a new stock to the small cap portfolio

I started my small-cap portfolio in February. I am still creating the bases. The first stock I bought Altium received a takeover bid the first week. I sold and added a new stock last week. Today I added another one.

My small cap investment method

I won’t buy small cap stocks the same way I buy big caps. They are more volatile, unpredictable and less followed by analysts and investors.

Therefore, I will follow these rules:

• My positions will be very small (1/10th of a normal position). This will allow me to

  • Limit the risk for each stock

  • Easily reinforce if the stock price falls - and my investment thesis is the same

  • To get my foot in the door and then reinforce or exit

• I won’t focus too much on the price even if, of course, I don’t want to unreasonably overpay

And now, it is time to discover the company and why I bought it.