Microcaps Can Be Big Investments

Summary: September 11, 2001 was a defining moment in the history of our country. Prior to this historical date the Department of Homeland Security was not even created and airport security was just like any other industry. Investors have capitalized on the recent surge in this sector. As most investors do, they go for the bigger companies and bigger name stocks when investing. As a result there are many micro-cap stocks that get overlooked. Micro-cap stocks sell for $5 or less per ...

September 11, 2001 was a defining moment in the history of our country. Prior to this historical date the Department of Homeland Security was not even created and airport security was just like any other industry. Investors have capitalized on the recent surge in this sector. As most investors do, they go for the bigger companies and bigger name stocks when investing. As a result there are many micro-cap stocks that get overlooked. Micro-cap stocks sell for $5 or less per share. While you most likely will not become the next Warren Buffet by investing solely in micro-caps you can and should add them to your portfolio. Just as you will not become filthy rich with micro-caps, you will most likely not go broke either. Because of the minimal selling price there is so much less risk. Whether you are looking to improve your existing portfolio or you are just getting into investing, and you do not have a lot of money to spend, this level of stocks can be an excellent investment. Some of the companies that exist in the homeland security sector are relatively new, which makes researching them a bit more difficult than a company such as GE. If you do spend the time you can find some excellent stocks. When looking for a company to invest in you should consider things such as management, what the current hot products in the industry are, and some evidence of stability. I will share some companies that I feel meet these criteria. By no means should these examples be taken as a recommendation. This is just a guideline of what to look for in a possible investment. If you decide to invest in any of these companies it should be because you researched them and found them to be a good investment for your portfolio.