Welcome to Stocks & Stones
My name is Mathieu Martin, and I am based near Montreal, Canada. I have a decade of experience investing in small companies (mostly public, sometimes private). This experience puts me in a unique position to help you navigate the fascinating market of small public companies, understand its opportunities, and avoid its pitfalls.
My journey started as a small private investor with limited capital and no education or experience in finance. Through self-learning, perseverance, and the help of mentors, I taught myself how to invest profitably in the stock market. I chose to focus on small companies, or ‘‘microcaps’’, because they’re one of the least efficient asset classes out there and one where I could develop a competitive advantage.
I believe one needs to have a relentless focus on self-improvement and develop resilience to be successful in investing and in life. Besides investing, I enjoy running ultra trail races (50+ kilometers / 30+ miles) to develop those same important qualities. I guess I just love the ups and downs, in the markets as well as in the mountains (hence the name Stocks & Stones)!
I hope my journey will unveil some valuable lessons for you.
Why Small Companies?
There are several reasons to consider small companies as an attractive asset class:
They typically grow faster (in %) than larger companies. It’s way easier to grow 50% on $1 million in revenue than on $100 billion.
They are typically less discovered by the professionals. Most institutional funds have restrictions and thresholds below which they won’t invest (e.g. no stocks below $5.00/share or below $500 million in market capitalization). You can be ahead of the curve and invest in stellar up-and-comers before the big money can.
They are more volatile. Although volatility is often associated with risk, I believe volatility should be viewed as an ally. Volatility is what creates opportunities. You want to take advantage of it by buying low when the market offers discounts or selling high when the market offers you too good of a price.
They help you diversify your portfolio. Since small companies are not perfectly correlated with larger ones or with other asset classes like bonds, real estate, gold, etc., they’ve been shown to provide diversification benefits to an overall portfolio.
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Disclaimer
This publication is for informational purposes only. Nothing produced under the Stocks & Stones brand should be construed as investment advice or recommendations. Mathieu Martin, the author, is employed as a Portfolio Manager with Rivemont Investments. This publication only represents Mathieu Martin’s own opinions and not those of Rivemont. Rivemont may own positions and transact on any securities mentioned in this publication at any time without prior notice. Always do your own research and consult a professional before making investment decisions.
