|
 |
Honesty and transparency are fundamental to me.
They are the building blocks of high integrity.
That’s why I should confess that I made a mistake…
 |
I am thinking about launching an exclusive series about Tiny Compounders.
Those are Micro Cap Quality Stocks with tremendous upside potential.
It uses exactly the same philosophy as Compounding Quality, but focuses on very small companies. Think about trying to invest in Apple twenty years ago.
Please note that we'll never write about these companies via Compounding Quality (and they are not in our coverage) as we would influence the stock price too much.
Because these companies are so small, the series will be very exclusive. Maximum 200 people will be allowed and it will be quite expensive.
If you are interested, you can put yourself on the waiting list here.Why I’m Done Buying Small Caps
Monday (17 February), I wanted to buy a new high-quality compounder for Our Portfolio.
(You can read the announcement here)
Unfortunately, my limit order (GBP 80) didn’t go through because the stock rose significantly on the buy announcement. That day, the stock went up over 10% intraday.
 |
The reason for this price increase wasn’t the right one. The company didn’t report earnings, acquire a new business, or make any other fundamental change.
The increase was due to our announcement.
I don’t want this to happen again.
That’s why I am considering not buying Small Caps anymore.
This wouldn’t be great news. Small Caps have the potential to be life-changing investments. As you might know, the best-performing stock in Our Portfolio is a Small Cap.
On average, Small Caps outperform the market by 3.7%.
 |
I still want to provide you with high-quality Small Caps without influencing the price too much.
That’s why I launched this new series…
Small Cap Of The Month
In this new series, we’ll introduce you to high-quality small businesses.
These companies can be great investments, but they might be too small to buy for Compounding Quality.
Our idea this month? Harvia.
Harvia - General Information
👔 Company name: Harvia
✍️ ISIN: FI4000306873
🔎 Ticker: HEL:HARVIA
📚 Type: Oligopoly
📈 Stock Price: 46.9 EUR
💵 Market cap: 875 million EUR
📊 Average daily volume: 1.3 million EUR
 |
1. How does Harvia make money?
Finland is famous for its stunning nature, being the happiest country in the world, and its sauna culture.
Harvia plays a big role in this. This Finnish company is the global leader in the sauna and spa market.
Recently, Harvia expanded to the US by acquiring ThermaSol, a steam room manufacturer.
Harvia’s management strongly believes in acquisitions like ThermaSol.
The sauna and spa market is highly fragmented, making expansion through acquisitions interesting.
To some extent, it can be seen as a serial acquirer.
What about Harvia’s moat? The company has a 75-year history, proving its resilience. Its strong brand and reputation