Academic studies finally back up what I have found in 10 years of investing:
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Academic studies finally back up what I have found in 10 years of investing:
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Interesting info. I’d bet that these little-traded stocks typically have high insider ownership as well which probably contributes to part of the extra return
Here is one stock that fits the pattern of being thinly traded and having high insider ownership: Alloy Steel International (AYSI.OB).
Be careful with foreign bulletin board stocks, Dave. Risky area.
Juan,
One way to minimize risk is to do a lot of research before you invest. That works with foreign bulletin board stocks as well. Aaron has invested in some Canadian bulletin board stocks, partly because he likes that Canada’s economy is benefiting from the bull market in commodities, and Canada is fiscally stable. The same is true of Australia.
Also, one point Aaron has made elsewhere (and others have made as well) is that small companies tend to have relatively simple businesses, and thus are relatively easy to analyze. This is true of Alloy Steel International. Do a little homework on it and see what you think.