Applying Old World Wisdom in Today’s Market – Searching for a ‘Pearl Seed’
According to history and lore, pearls are symbolic of wisdom gained through experience. They are known to attract good luck and wealth and are symbolic of loyalty and integrity. Not all oysters produce pearls. Many hundreds of oysters must be gathered and opened to find even one pearl. Similarly, not all micro-cap and small-cap stocks contain a seed that becomes a pearl. But some do. And our job is to find them. A pearl seed is a special investment hidden within the shell that, to the untrained eye, looks like a stone. The hard shell of the oyster protects the seed while it grows, just like a business with an innovative product or service in high demand. By relentlessly digging and sifting through hundreds of companies, we occasionally find something special growing inside. This is the unique idea, or what we call the ‘pearl seed’, that may grow into something valuable.
The Problem:
Investment return is all about having better information than other investors. How do you get better investment information than the investors working with the big firms like Goldman Sachs?
The Solution:
Focus on the segment of the market where structural limitations may prevent Goldman Sachs and other large firms from participating. The strength and size of the large firms is what can prevent them from buying shares in smaller companies; they simply have too much money to invest.
The Result:
We are experts in finding rapidly growing smaller companies, or as we like to call them, ‘pearl seeds’. With our detailed analysis, we attempt to uncover the very few ‘pearl seed’ investments before other investors or analysts can find them since their focus is on larger companies. These limited targeted ‘pearl seed’ investments in smaller companies—which we have been uncovering for the past thirty years— may potentially provide significant returns greater than larger companies.