These Stocks Can Do Something Coca-Cola Cannot

Three of my biggest winners have one thing in common…

Green Brick Partners (GRBK). Tucows (TCX). Luna Innovations (LUNA).

They were all small-cap stocks when I bought them. And they delivered gains of 120%, 539%, and 850%, respectively. So, I always come back to small caps to hunt for extraordinary gains for my readers.

  • Keep in mind, small does not necessarily mean high risk.

Two-thirds of all US stocks are small caps, with market caps under $5 billion. So, it’s a big group. And yes, some of those companies are newer and riskier. But many small caps are well-established players. Like Callaway Golf (ELY), which has a $2 billion market cap, or Energizer Holdings (ENR), which has a $3.8 billion market cap.

Energizer has been making batteries for over 100 years. Callaway has been selling golf clubs for 40 years. Both have solid track records, but they’re still 1,000 times smaller than a company like Apple, which has a $2.2 trillion market cap.

  • I hunt for opportunities in small caps because they have more room to grow.

That means more potential to deliver life-changing returns. A $100 million company could grow tenfold and turn into a $1 billion company. But it would still be small enough to explode much higher.