Praise for Small Stocks, Big Money
If you want a focused read on how to get rich buying smaller-cap stocks, this is the book. Mr. Gentry is at the top of his game. He writes with ease and grace as he describes how the big men got rich in microcaps.
Ray Akers, executive chairman, Akers BioSciences, NASDAQ: AKER
Small Stocks, Big Money is a fascinating read. It gives a solid account of the psyche, discipline, and the value systems of some of today's most successful microcap investors. This book is a must-read for both investors and entrepreneurs who are developing or investing in growth companies.
Dhru Desai, executive chairman, Quadrant 4 Systems
Small Stocks, Big Money is the comprehensive guide to navigating the sporty world of smaller-cap investing. You'll enjoy learning about how men like Byron Roth built an investment banking powerhouse in Southern California finding small companies that later became dominant players in their space.
Dan Erdberg, chief operating officer, Drone Aviation Corp.
Gentry has delivered what has never been done until now, providing a detailed picture of the microcap landscape with all its twists and turns, winners and losers. This is a book long overdue. Small Stocks, Big Money is chock full of wisdom from some of the best players in the business. It belongs on the desk of every investor who wants to learn from the pros how to make money investing in microcap stocks.
Paul Burgess, CEO and president, Lattice, Inc.
Small Stocks, Big Money should be mandatory reading for anyone studying business or finance. As a long-time owner of a small-cap investment bank, I was pleased to discover a book that provides a sweeping history of the microcap space. This is a book that every stock broker and every banker in the country could benefit from reading.
Richard Rappaport, founder and CEO, WestPark Capital
Dave Gentry is a rare find in the microcap space. As the CEO of a public company, I found Small Stocks, Big Money an incredibly helpful guide. If you want to know how to make it in this space, this is your book. It's a great read for novices and professionals.
George C. Carpenter IV, CEO and president, CNS Response, Inc.
Dave Gentry has my respect and admiration. As a CEO new to the microcap space, I am quite pleased to know that I am working with a team that knows the ins and outs of smaller-cap stocks. Small Stocks, Big Money is a sizzling look at those who dominate this volatile world. It's a fascinating read.
Andrew Durgee, CEO, The Cointree
Small Stocks, Big Money is a unique and privileged look at the ultra-rich in microcaps. This book is a great read on two counts: lots of practical business advice, and it serves as a basic tutorial on how to make millions buying small growth stocks.
John Lorenz, CEO, Global Recycling Technologies
Small Stocks, Big Money is a study in how the biggest players in the microcap space became rich but it also provides a historical context for both the Superstars and the companies they invested in, which make the book even more interesting.
Richard Kreger, senior managing director of investment banking, Source Capital Group
Quotes from the Experts
The single most important way we attempt to manage risk, in any environment, is by seeking to buy stocks very cheaplywe never want to pay too much.
Bill Hench, portfolio manager, Royce Opportunity Funds, Microcap Superstar
Small caps outperform not because of market capitalization alone but because the stocks in this category are least efficiently priced.
James O'Shaughnessy, author of What Works on Wall Street
Higher returns, of course, come with more risk... the trade-off is, yes, you get long-term outperformance... but the volatility of returns is greater.... That's the price you pay if you want exposure to a better-performing asset class.
Samuel Dedio, manager of the Artio U.S. Microcap Fund (JMCAX)
The hardest part of raising capital for CPI was that we were totally unknown. I was a young Puerto Rican kid in Minneapolis, a land of Midwesterners. I had no previous history in manufacturing or inventing anything. Imagine you go to an investor and say, We're going to make a better pacemaker,' and they say, Doesn't Medtronic make a pacemaker?'
Manny Villafana, founder of St. Jude Medical, Inc., Microcap Superstar
The risk always lies within management, so we're constantly evaluating through our three-part process. We meet with three to five CEOs and CFOs of small companies in our offices every week.
Michael Corbett, manager, Perritt Capital Management, Microcap Superstar
We've found that the area that we can perform the best is in the microcap space. So it's a microcap value bent that really differentiates us, and that is because it's an area of the market where there are enormous inefficiencies and where our hard work pays off, because we can identify opportunities that are significantly underpriced.
Eric Kuby, chief investment officer, North Star Investment Management
Investing in small- and microcap stocks requires significant time and resources because few investors are focused on the space. The reason that many investors do not pay attention to this space is that as managers' assets grow, it becomes increasingly difficult and cumbersome to allocate capital to less liquid and under-researched companies. With a higher level of assets under management, the contour of their portfolio, at some point, needs to change: either more names need to be included in the portfolio, diluting the impact of any single idea, or larger companies need to be included, forcing the portfolio to drift into a more efficiently priced universe.
Punch & Associates Investment Management, Inc.
Be patient when buying. It might take six months to accumulate a position; you should be in for the long term and remember 20% of microcaps go to 0.
Buzz Heidkte, chairman, Midsouth Investors, Microcap Superstar
Work hard, be a long-term thinker, develop tenacity and remember nothing happens without taking calculated risks.
Phil Sassower, chairman, Phoenix Group, Microcap Superstar
For me, the fun is to build, not to manage. I look for what's available, what is possible to do. That's the overriding consideration. There are a lot of things I would have liked to do, but didn't have the means.
Dr. Phil Frost, chairman, OPKO Health, Microcap Superstar
I've made my money by being the first in markets. As a venture capitalist, you have to seek out the cutting-edge companies. You get in as early as possible. That way you make a lot more headway and profits.
John Pappajohn, entrepreneur, philanthropist, business leader, Microcap Superstar
Do your homeworkunderstand companies you invest in forwards and backwards.
Charles Diker, Diker Management, Microcap Superstar
Investment advisors generally steer clients away from small stocks because they can be volatile and offer lower returns on average than their larger, more stable counterparts. Microcaps, then, are usually viewed as a trade to take advantage of momentary price movements, rather than as a long-term investment.
Jeff Cox, finance editor, CNBC
I had grown tired of backing make-believe CEOs and entrepreneurs, so my partners and I went on the board, took a hands-on approach, built the company, and put in a solid management team (Interclick, sold to Yahoo! for $270 million).
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