Wide Moat Confidential

Wide Moat Confidential is a monthly newsletter from Wide Moat founder Brad Thomas.

For the first time in Wide Moat history, Brad and his team are swinging for the proverbial fences with small-cap investments that carry exponential return potential.

In this service, we identify small opportunities with the potential for rapid growth. Each and every recommendation has the potential for 40% annualized returns… at a minimum. The types of companies we’ll profile absolutely have the potential to double in 12 to 18 months.

Our goal will be simple: Find small, publicly traded companies with high-growth potential. It’s simple, but that doesn’t mean it’s easy.

There’s a lot going against a company that’s still starting out, whether private or publicly traded. Here’s just a smattering of their difficulties:

• Lesser brand-name recognition and respect. Because they’re smaller, they’re often less known and trusted.
• More complicated expansionary efforts. With less ground already gained, they often have to put in extra time and money to properly research growth opportunities.

• Financial misgivings. Banks and other lending institutions charge them more interest on loans since they’re taking on a greater risk of not being paid.

However, small caps’ smaller status also means there’s greater room for financial gain when they do succeed. It’s a lot easier for a million-dollar company to double or even triple its profits than it is for a billion-dollar company.

Think of it this way. For shares of Apple (AAPL) to double, the company would have to add $3.6 trillion to its market capitalization, a figure that is roughly equivalent to the GDP of the United Kingdom. Apple is a great business. And perhaps, with time, the stock could get there. But that’s a big lift for any business.

By comparison, the companies we will profile at Wide Moat Confidential will generally have market capitalizations below $5 billion. Some will be valued in the hundreds of millions of dollars. For these small firms, meaningful growth in sales or earnings can quickly translate into capital gains measured in the triple-digits.

Our team searches roughly 1,200 small-cap companies each month for the "diamonds in the rough" for our Wide Moat Confidential subscribers. It’s our job to find them, so you can reap the rewards.