facebookInvesting in micro-cap stock, micro-cap stock ETF, are terrible ideas and just bad investing. Thoughts? - Seedly

Anonymous

Edited 14 Jan 2022

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General Investing

Investing in micro-cap stock, micro-cap stock ETF, are terrible ideas and just bad investing. Thoughts?

Discussion (5)

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As with everything in investing and growing money, 2 things need to be kept in mind: caveat emptor and your mileage may vary!

Having said that, if you have the time, inclination and capacity to do research, bottom-up stock picking may yield the ocassional pearl. In that sense, a well reasoned investment decision in a stock is much better than an ETF. If you have low risk appetite, better avoid this space alltogether.

Finally, what % of your portfolio will you risk in this space and whether you have the stomach to buy and hold your conviction bets even during times of illiquidity and very low valuations is an important consideration.

In summary, think deeply and proceed with caution.

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  • Micro cap = penny stock.
  • Risky.
  • Micro cap ETF not much growth
  • The problem with market cap ty...

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