The Case for Less Liquid Stocks

[biaggio]

http://www.smartmoney.com/investing/stocks/the-case-for-less-liquid-stocks/

 

Illiquid securities. A good pond for small investors to fish in?

[StubbleJumper]

I've been there, done that.  I tend to think they're a little bit like hell -- seemingly easy to get into, and almost impossible to get out.

 

SJ

[SmallCap]

I love them, they have been one of my playgrounds for the last 10 years. I just don't intend to move out of them quickly and around half of my exits have had to do with being bought out. It takes a long time horizon and a lot of conviction.

 

SmallCap

[ragnarisapirate]

I think that it is a bit ironic, how, they say $30 million a day is illiquid, where I own shares in companies that quite literally, average under $1K in shares a day... When I think of super illiquid, I think of stuff that trades even less than that!

 

Nanos are hard to get in and out of, but the rewards can be huge. Management will generally talk with you and you can give them suggestions that they will actually take.

 

Besides, if you think that you are going to need the money soon (where you would need the liquidity), you probably shouldn't be in stocks in the first place.