what better way to start sunday than a #kilpest thread: a classic peter lynch pick & shovel investment for the diagnostics sector. If you like the thread, please retweet this tweet to help educate max investors. 🙏🙏

Before I dive into Kilpest, some words on microcap investing. Everyone **needs** to be aware of what they are signing up for.
Two interviews from @varinder_bansal sir’s Omkara capital with very successful microcap investors (one with @iancassel sir: https://t.co/WDSOOIcUn8 ...
@varinder_bansal @iancassel & one with @hiddengemsindia sir: https://t.co/iC8iKOsKWz) do a wonderful job explaining all the landmines & things to keep in mind. Do watch these, please before you buy any #microcap
@varinder_bansal @iancassel @hiddengemsindia My own take is that one has to create a diversified PF of uncorrelated microcaps (if you'd typically invest in 5, make it 10 and so forth). Understand that liquidity risks will always remain.
@varinder_bansal @iancassel @hiddengemsindia In a market downturn, it wont be surprising if 2000 people want to sell a microcap and there are 0 buyers. Only invest in microcaps as a basket, and if you are comfortable sitting on 80% losses for many years. Otherwise dont. Risk wrt scale becomes larger in microcaps.
@varinder_bansal @iancassel @hiddengemsindia Higher probability of business disruptions, down quarters. Lack of Concalls or investor presentations. Maybe some facets of the co which certain investors might consider as red flags (promoter pay, RPT etc). https://t.co/3jeqlXO0QH has been invaluable to my journey as an investor
@varinder_bansal @iancassel @hiddengemsindia Quality of collaborative research there (specially for microcaps which dont have much info) is remarkable. Its not a forum, its a community :-). Worth joining or at least reading specially if you want to dabble in microcaps.

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