John Bichelmeyer, CFA
John Bichelmeyer, CFA, manager of the Buffalo Emerging Opportunities Fund (BUFOX), whose five-year annualized performance of 16.8% ranks in the top 1% of its category. BuffaloFunds.com
The smallest companies offer the greatest potential for investors because they tend to grow much faster than larger businesses. And as the US economy improves, investors are more willing to bet on stocks with total stock market values of less than $1 billion—or even microcaps, which have the lowest market capitalizations—even though they can be far more volatile. Microcaps have gained an annualized 19.5% over the past three years based on the Russell Microcap Index, versus 18.5% for the Standard & Poor’s 500 stock index.
The best tiny stocks today can be found in growth industries such as technology that are being propelled by trends likely to last for several years…