Are You a Business Owner or a Day Trader?
Most investors have trouble holding a stock for long periods. This mindset usually leads to costly mistakes and the worst kind of day trading: the buy high, sell low strategy.
For most of the suggestions you’ll read in this letter, we aren’t looking for a 7% annualized gain. We are seeking the 700 to 1,000% return, but this can only be realized if you think like a business owner.
Business owners don’t stare at their market value daily or sell their businesses on a whim. I’ve said this before, the best part about public companies is their liquidity, and the worst thing about them is their liquidity.
It allows for that daily temptation to obsess over price while completely ignoring the value or the business itself.
Take Zinc One (TSXV: Z), for example. If you or I owned 100% of the entire company outright and had a former Barrick mine manager running our core project, we would own one of the highest-grade zinc assets on the planet, with CAD$10 million in the bank for the company, and we would feel great.
In fact, we may even splurge a little, as we’d know we have it so good and that we are primed for a flood of wealth over the next few years.
However, as fractional shareholders of any public company, including Zinc One, many investors can’t get over the volatility, and they forget about the actual business.
In every multi-bagger I’ve cashed out on in the public markets, it’s taken a great deal of patience. This letter’s micro-cap stock suggestions were built for extreme profits by partnering with the proven winners of specific industries.
In order to fully benefit, you need to think like a business owner and a partner. The money you can make in these smaller companies is truly life-changing, but the real gains are not in the week-to-week moves – they’re always in the actual business building.