Hidden Gems is a Motley Fool stock newsletter led by advisors Andy Cross and Seth Jayson. The Hidden Gems investing team seeks to identify the best small-cap stocks to take advantage of the massive growth opportunities in companies before they've maximized their growth ramps.
Do small-cap stocks make sense for my portfolio?
That's not a question we can answer for you -- everyone's risk tolerance and personal circumstances are different. But the fact is that many small-cap stocks offer enormous growth opportunities since they're so early in their business cycle.
Small-cap investing presents opportunities for enormous gains -- but also big risks. Small companies are inherently less stable than their larger peers, so investors should be prepared for volatility and the certainty that not every recommended stock will be a market-beater. One of the best ways to manage these risks is to have a diversified portfolio – the Hidden Gems team recommend at least 20 small-caps -- and to invest money regularly.
Most importantly, if you're going to invest in small-cap stocks, it's crucial to pick the right ones. That's where the Hidden Gems team can help.
Investing, Hidden Gems style
As the name suggests, Hidden Gems is looking for stocks that are hidden. These stocks have been passed over by the broader market, either because they're too small for regular analyst coverage or because analysts have discounted their expectations for business growth. As such, the Hidden Gems team generally recommends companies with market capitalizations under $2 billion.
Hidden Gems is also looking for stocks that are gems. These are companies with defensible moats, great management teams, and strong growth prospects. They're companies that are being unfairly ignored – an unfairness the team is happy to take advantage of to benefit thousands of Hidden Gems subscribers.
These aren't necessarily hard and fast rules -- the team has certainly picked larger stocks and well-known brands from time to time. But one rule that is nonnegotiable is buying and holding for the long term. The Hidden Gems team aims to hold stocks for at least three years, but their favorite holding period (like Warren Buffett's) is forever. At The Motley Fool, we aren't traders – our goal is to find quality businesses and hold them for a very long time.
What a Hidden Gems subscription gets you
Hidden Gems comes with lots of benefits intended to enrich members as they learn small-cap investing. Andy and Seth each release a new stock pick once per month – so subscribers get two new stock ideas delivered to their email inbox each month. Additionally, the Hidden Gems team release their picks for the ten "best buys now" -- stocks already recommended in the newsletter which are looking particularly attractive – monthly. For new small-cap investors, the team also has a series of "starter stocks" -- the first stocks they'd recommend for any new Hidden Gems subscriber.
A Hidden Gems subscription also opens the door to the Hidden Gems message boards, a members-only area where hundreds of Hidden Gems subscribers go to discuss stocks, ask and answer questions, and generally build community. It's a great place to go, and we highly recommend any new member with questions head over there to learn from fellow investors who just want to help educate each other in the joys of small-cap investing.
With these benefits (and more), it shouldn't be surprising that thousands of investors subscribe to Hidden Gems to receive Andy and Seth's new stock picks, to learn from the accumulated wisdom of thousands of their fellow investors, and to learn more about how to beat the market with smart small-cap investing. And with subscriptions currently on sale, maybe it's your time too. Click here to learn more.
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