Drew
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Drew in Just my thoughts,

Using Your Gut to Invest in Small Companies

Forbes recently came out with a list of 15 small company stocks you should own. It got me thinking about how one might go about making a plan to invest in small companies on a case by case basis.

I used to invest in a “Small Cap” index fund, because I was interested in capturing some increased return that generally comes along with investing in smaller companies. But I would now like to get into investing directly into small businesses that I use and love. Maybe that’s an irrational form of investing, but if, as they say, picking stocks is like a throwing at a dartboard blindfolded, then it might not be the worst way to go.

It caught my eye that BJ’s Restaurants (NASDAQ: BJRI) is one of the up and coming stocks. I used to go there all the time with my family, friends and teammates. I have dreams about their Pizookie, which is a dessert that could feed a small village but I liked to consume by myself in the span of 10 minutes. If I love it, why not try investing in them?

I'm sure this kind of “go with your gut” investing has it’s drawbacks, but do you really have to know all the financials of a company before diving in? BJ’s is busy everytime I see it, and that’s good enough for me. Whether this works out remains to be seen, but there is something very appealing about investing in small companies that I interface with regularly.