Small Cap Technology

Small companies, usually technologically advanced start-ups, prosper in rough times like those we are seeing in the economy today. Their position in the market is usually undervalued, and their ability to drive emerging markets into new stages of growth offers long-term investment opportunities.

An example of a company that fits this description would be Origin Oil. their position as technology leaders in the highly invested sector of algae biofuels will allow them to realize long-term growth and will help develop this infant industry. A Warren Buffet “buy and hold” mentality must be implemented into your strategy when you commit to investing in companies such as Origin Oil.

The difference between the guys at the yacht club comparing their yachts is: the guy with the small yacht bought Microsoft at five and sold it at ten. The guy with the medium-sized yacht bought Microsoft at five and sold it at 20. The guy with the biggest yacht in the club bought Microsoft at five and still owns it today. If you do plan on selling, sell half of your position once the stock doubles from your buy price, and let your profits do the rest of the work. 
This will minimize your risk immensely and perhaps offer you better sleep at night.

Use your intuition and do your research when deciding to invest in companies like Origin Oil. Practice a long-term Warren buffet “buy and hold” strategy, and reinvest the dividends. Follow their developments closely—and stick with your gut.

2 Responses to “Small Cap Technology”
  1. AllenCaron says:

    Hi: Your response to my algae blog post prompted me to take a look at CrazyforCarbon…very interesting. We write almost exclusive about small caps and now I’m very interested in algae technology. You probably saw it but the New York Times did a big piece on algae and Sapphire Energy earlier this week…keep up the good work, Len Hall

    • Thanks Len! I appreciate your support and am very grateful for your comment. Carbon to algae oil is a fascinating new market with leaders starting to emerge from all over the globe. The question is: Who will emerge industry leaders? Who has the greatest buy out potential? Who has the strongest portfolio of new cutting edge technologies and processes? What potential business collaborations have the best chance to create a synergy that will prove to be unmatched? With global investments from local governments, venture capitalists and public funding reaching the billions this infant industry will start to begin commercialization and enter into it’s growth stage with in the next 1-3 years. Very exciting stuff for the right investors. Theodore Sturos

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