Investment Fables: Exposing the Myths of "Can't Miss" Investment Strategies

Chapter 9. The Next Big Thing: New Businesses and Young Companies

In Search of Bargains

Gus prided himself on finding bargains. He had bypassed realtors and found a cheap apartment to rent in New York City by contacting landlords directly. He filled it with antiques that he found in small furniture stores at bargain prices. He ate only in restaurants that had never been reviewed by The New York Times, based upon word of mouth and his own research. Heartened by his success at finding bargains, Gus decided to apply the same strategy to his investments. He began by looking for stocks in small companies that were not followed by equity research analysts at any of the major investment banks. He expanded his search to look at companies that were planning ...