How it Works?

We have been investing in the small cap market for 20+ years. We have made money, lost money and learned many hard lessons along the way. We use our experience to select and invest in small cap stocks that we believe have a high chance of success, and then share our research, analysis and investment strategy with our readers.

As a Next Investors subscriber you will be the FIRST to know when we make a new investment, and you will get regular commentary about the companies in our stock portfolio.

How we choose our investments:

We review over 400 investment opportunities per year. On average we make just 10 investments.

We look out for:

  • Great management with integrity and a successful track record
  • Top class projects vetted by our trusted industry experts
  • Undervalued companies that have been unfairly priced by the market
  • The right capital structure for sustainable share-price growth
  • Best in class Environment, Sustainability and Governance (ESG)

Quality management + quality project + investor awareness is our formula for long term investment success.

Our General Investing Strategy

We seek to invest for 1,000% gains. Sometimes it works and other times it doesn’t. For each company we invest in we develop an investment strategy and stick to it.

We can’t offer any personal advice but we do share our own investment strategy for each company in our portfolio and provide updates as the strategy plays out.

We use two types of investments styles in our portfolio

  • Long term holds - we invest with a view to hold for a few years. We wait for the 12 months capital gains discount while the company delivers at least 5 material announcements before we look to free carry and take profit - a 3 to 5 year strategy
  • Early stage exploration - invest long before key drilling, patiently hold and then free carry and take some profit as the share price rises on speculation of a positive drilling result - a 6 to 12 months strategy

The ongoing progress for our investment strategy for any individual company can be found on the individual company page.

When do we Write About a Stock in our Portfolio?

Expect about 3 to 5 emails per week from Next Investors.

You will get an email from us:

  1. When we make a new investment we will write a note to announce it
  2. When one of our investments makes a news release that we think is important we will provide our commentary on the news
  3. If there is important mainstream news that impacts one of our investments
  4. Weekend summaries of what happened during the week across our portfolio

We don’t write about every single announcement that each of our portfolio companies make, we try to choose the announcements that are material.

A Word of Caution for New Investors

We seek to invest for 1,000% gains over the long term - our style of investing is a marathon, not a sprint. It can take years for a company to deliver enough milestones to achieve these kinds of returns, if at all.

Early stage ASX investing is risky, and while we feel our investments are set up for success, a lot of unexpected things can go wrong in early stage investing.

We don’t provide any BUY or SELL recommendations, price targets or personal investment advice. We encourage all readers to do their own research, and understand what they are investing in.

If you are new to investing we strongly encourage you to read through our ebook which comprehensively covers the key lessons from our investing career: How to make Money Investing in Small Cap Stocks.

Ultimately you are responsible for your own investment decisions, and there is no guarantee of success.

Always remember to consult a financial advisor before making any investment decisions.

Investor Awareness Services

Once we have decided to invest in a company, we also request that they sign a mandate with us for investor awareness services to help them reach new investor audiences through a range of different digital channels and partner publishers.

With over 2,000 companies listed on the ASX it is critical for our investments to stand out from the crowd.

Quality management + quality project + investor awareness is our formula for long term investment success.

We charge a fee for this service which is why you will see the conflict of interest notice at the bottom of each newsletter.

This is an exclusive service that we only offer to companies that we are invested in and have passed our rigorous due diligence process.

Because we are already long term investors in each company we request that our fee is paid in shares.

Why Environmental, Social and Governance (ESG)?

Best in class ESG companies attract more capital, better customers and top talent – this leads to better shareholder returns over time.

We require that all new investments sign on to an ongoing ESG improvement program and quarterly ESG reporting.

Want to know more?

See what other readers are asking on our FAQ page.

Read about the history of Next Investors.