During his recent interview with Tobias, Paul Andreola, Founder and Editor at Small Cap Discoveries discussed Finding Great Opportunities In The Most Obscure Places. Here’s an excerpt from the interview:
Tobias: Do you have any preferred industries or sectors or anything that you avoid?
Paul: Yeah. Things I avoid for sure, we stay out of the extraction business. We don’t do anything in mining or oil and gas or anything like that. We look for businesses that have some sort of repeatability. We’ve invested in everything from engineered wood products, software, biotech– biotech is too strong a word because that’s tends to be a little bit too binary. Healthcare, a lot of healthcare stuff. And then what we’re finding is the best places are these obscure little, almost niche markets where there’s no real industry. It’s just some company is developing something so new that it doesn’t have an industry.
Xpel is a great example. When I found it, I didn’t even know this stuff existed. If you don’t know Xpel, they manufacture paint protection film for your car. The first time I saw it, I never heard of this stuff before. So, what industry is that? Okay, it’s kind of in the auto industry. Anyways, it was bizarre. Now, it’s a semi-big niche industry. So, I try not to get too caught up in what they do. I try to get more caught up in the numbers and have the numbers prove business up.
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