Welcome to Little Grapevine, a new platform with a mission to bring big tools to the everyday investor to help organize research tasks. We intend to fill a gap that Wall Street gurus created when they chose to save their best information for only their institutional clients.
We believe investors can and deserve to have an edge. With the rise of ETFs and passive index investing, stock picking is a lost art. Regardless, we are building Little Grapevine for stock pickers who know how rewarding it is to achieve investing success with the execution of strong research disciplines and who see value in being armed with strong competitive research tools.
We think like investors, because we are investors
We host on-line virtual conferences, video interviews, podcasts and archived company presentations from microcap companies invited to join the platform. We only on-board up to 5 companies in any given month to avoid overloading you with information. In addition to saving you time, Little Grapevine can add value to your research toolbox because we dig into the companies that join the platform to suggest topics that management should address during their presentations to help you truly understand their businesses, opportunities and risks.
You might be wondering…Why microcaps? You can read all about why we like microcaps here.
But in short, we believe the biggest edge for stock pickers lies in what we like to call Tier One Microcaps. It’s true that many, if not most of the microcap universe, is a minefield of addictive pump and dumps, biotechs and pipe dream stories. This type of hype along with the constant bombardment of get rich quick commercials on YouTube feeds our desire for unattainable short-term profits that is best described by this alarming stat:
An investor’s average holding period for a stock they own has decreased from 6 years to less than 6 months!
Did you know that despite the fact that Magellan fund averaged 29% for the 13 years (1977 to 1990) when Peter Lynch was the fund’s portfolio manager, retail investors who invested in the fund averaged just 5% annually. What happened? Well, retail investors buy stocks when they are going up (“FOMO” aka fear of missing out) and sell them when they are going down (plain fear).
We suggest that you read this article, summarizing a Google Talk presentation by portfolio fund manager Lauren Templeton, where she breaks down why individual investors consistently under-perform.
Overall, we believe that the quality of companies in the entire stock market has decreased over time, across all market cap sizes. Let’s not forget big cap frauds like Enron.
How do you avoid the “Lynch Stat”? One way is to build confidence in stocks you are buying by gaining a deep understanding of their businesses.
If you are a day trader or looking for short-term stock picks, Little GrapeVine is not for you. This project is for serious investors that demand serious research tools and believe that a fundamental approach to investing is the winning approach. We know you’ll find our tools useful as a research service and look forward to making Little GrapeVine a go-to research venue for stock pickers. Although we will likely own or want to own many stocks on Little GrapeVine, we will not make recommendations or tell you what to buy or sell. Our hope is that we all become better investors from listening to CEOs and other company officers share their vision of growth.
Likewise, If you are a company that is seeking to “pump” your stock through our network, we are not for you. If you are a best-in-class company that wants to build long-term relationships with your shareholder base, we want you on the Grapevine.