Lately, I’ve gotten intrigued by penny stocks. My dad had me look a couple up and I decided to invest in a few. And it’s been a really eye-opening experience. While I don’t personally have much by way of practical experience with finance or banking, it has always been something I am extremely interested in. The level of exposure you get to senior leadership in a penny stock is unparalleled. When you call as an investor, you usually get a call back. I also think it’s a really good way to learn more about how business works. I’ve been fortunate to be in a position in my career to see a lot of facets of how companies operate. I still learn new things every day, even in my dealings with my portfolio of pennies. Digging into the financial statements and press releases from smaller-cap companies really helps put perspective around how a company’s bottom line (and, hence, share price) can be impacted by certain events or shortcomings.
I’ll keep you posted on whether any of my pennies turn into dollars. In the mean time, I’d recommend taking a look at some small-cap stocks (or some true “penny stocks”) and start to figure out how they work. The amount you will learn from simply researching a new company, a new industry, or a new technology, is always worth the time.
Til Next Time,