Hilary Kramer - The little book of big profits from small stocks

In a nutshell (176 pages), this book tries to make the case for low-priced stocks. Kramer makes the claim in her sub-title that after this book you’ll never buy a stock for over 100$ again. Kramer begins with an explanation of her theories, what success she’s had, difficulties, and how to replicate the sort of success she has had.

What I got out of it

I definitely got a perspective of mid-term (a few months to a few years) trading that I’ve never heard before. Some of the things that Kramer suggests make a ton of sense, no matter the stock price.

What was difficult

Every active investor has their theories about markets and market prices. Kramer seems to avoid the idea of a market cap (all shares x share price) to make the point that if a stock is under 10 dollars, the company is not expensive. A company can split their stock, making the individual stock price half what it was, the company is still valued at the same amount. This oversight or neglect on Kramer’s part sort of takes away from some great ideas she has.

Recommendation

This book is tiny, and while I’m not sure if I’d pay full price for a hardcover, there are some great takeaways that can be well worth the money. Just keep in mind that there are some important aspects to looking for undervalued companies that are completely missing from this book. This is probably a great candidate for audiobook material as well.