One thing I’ve learned through the years is that many Americans simply aren’t aware of a stock market within the stock market.
They should be … because that’s where the big money is made.
It’s like a smaller, secret market within the overall $27 trillion market. Gains can potentially reach 500%, 1,000%, or even 2,000% or more in just one year.
No less than the legendary investor Warren Buffet has said he could generate a 50% annual return consistently if all he did was invest in this tiny section of the stock market.
It’s time you knew about it, too …
I have a great stat to show you in just a moment, but let’s start with proof of how much money is being made in this “secret” market. I’ve shown this chart before, but I want to make sure everyone sees it. Once you get this, you’re on your way.
Focus first on that middle column. You see massive gains of 1,074%, 997%, even 3,565% … all within 12 months. Those are the kinds of profits that make a real difference in people’s lives.
Now look at the right column. This is where you’ll find the one thing these big winners have in common: a small market capitalization. The average market cap of those 10 stocks — the biggest gainers of 2019 — is just $117.2 million. They’re called microcap companies.
I can tell you that nearly all of my biggest winners — especially the ones that have gained 1,000% or more — were microcap stocks. It doesn’t take as much to move the needle on a small company. What would be microscopic growth for Apple (NASDAQ:AAPL) or Amazon (NASDAQ:AMZN) can be transformative to a small company. That lights a fire under the stock.
Now let me share that other stat I talked about. My CEO came up with this, and it really shows the opportunity in owning small companies before they grow large.
It’s clear that you make the really big money during a company’s first 10 years.
Cisco Systems (NASDAQ:CSCO) averaged 87% gains annually its first 10 years. The last 10? Just 8%. That’s not even keeping up with the market.
So why would you want to invest in that stock today?
Here’s the bottom line: If you’re investing only in index funds, ETFs, or stocks that are household names, you’re missing out on the market’s biggest gains.
Let me tell you about one of my favorite microcaps right now.
It’s just common sense that every investor should have at least some of their portfolio in the stocks that make the most money.
That’s why I created the Microcap Millionaire Portfolio.
I went looking for stocks in that sweet spot, with their biggest gains still to come. We started with nine companies — and we’re about to add one more. Every single holding is a microcap (obviously), and they’re all in their first 10 years of trading
One microcap that went public a few years ago is in a fast-growing and critical industry: the next generation of wireless technology, called 5G. This technology underpins so many other coming breakthroughs, like autonomous vehicles, augmented reality, virtual reality, the Internet of Things (IoT), and more. None of those will work without the speed and reliability of 5G.
A lot of people are talking about the big industry players pushing this technology forward — the household names like Verizon (NYSE:VZ) and Qualcomm (NASDAQ:QCOM). Few people are talking about the tiny microcap company I’ve found that’s developing the key components the big boys need to take this technology mainstream.
It’s like investing in Intel (NASDAQ:INTC) at the dawn of the PC revolution. Intel went on to be one of the single greatest stocks of the past 50 years.
This small company, which is essentially doing the same thing for 5G, should be no different. That’s why I see it as the number one 5G play in the world right now … and it’s a fraction the size of Apple. Literally. It’s just one half of one percent (that’s 0.05%) the size of Apple.
By 2035, 5G is expected to enable $13.2 trillion of global economic output. This 5G microcap could grow a phenomenal 18X and still only have one tenth of one percent (0.1%) of the economic output. (You can learn how to discover the name and ticker symbol by clicking here.)
Owning small companies before they grow large is what made investors in Amazon rich. And Microsoft. And Cisco. It’s the kind of potential every investor needs in their portfolio.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.