Buy Companies, Not Stocks

Nov. 27, 2023 | RedChip Companies

Great advice from Byron Roth, CEO and Chairman of ROTH Capital Partners.

  1. “Buy companies not stocks, if you buy stocks, it will drive you crazy; when the market drops, illiquid microcap stocks are going to get hurt badly, so always remember that you’re buying a company.”
  2. “If you watch the market every day, the stock will drive you crazy.”
  3. “You can be happy with the companies you own, but not their stock, if you invest and you know what you’re investing in, you’ll have your day when the market recognizes, but might it not be today or tomorrow.”
  4. “Have a private equity mentality and take a concentrated position and don’t worry what the mark is at the end of the quarter; just know what you’re getting into.”
  5. “When no one wants the stock, that’s often the best time to buy. Some of my best institutions buy when everything is out of favor.”

"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President, NASDAQ Stock Market