WHAT IS THE ULTIMATE BUY AND HOLD STRATEGY ?
For Small Cap Investors there is very little chance of a quick return unless you know something (from management) the rest of the market doesn’t and they catch wind of this knowledge just after you have bought (otherwise known as Insider Trading !!) but for the majority of small cap investors it takes time. Sure you hit the lucky one where you buy and the stock rockets upwards by chance of a new deal being announced or some other good story but these are not that common. Being a small cap investor takes a lot of patience. Many a time you will sell by being impatient when the next week the share suddenly rockets. They say that it takes 3 years for a stock to go up a few hundred percent in 6 months. Stocks move very quickly so much so that they are hard to catch. So once you have chosen your stock, make sure it complies with all your investment criteria and then sit back and hold it until its time to re-assess after the next results to see if the company and management are still sticking to your investment criteria. Don’t chop and change as you will lose out and it shows that you really are not sure of your investment criteria.