Getting smarter through the pandemic

When it was evident that we were going to be stuck for a while, I pledged to do something I always wanted to. Learn more about investing.

Prior to the pandemic, I was the boring guy who invested in blue chips, ETFs and mutual funds. My portfolio was full of Vanguard and my risk was Apple.

In fact, my portfolio looked like this:

Retirement Accounts: 50%
Taxable Account: 25%
Cash 5%
Real Estate 20%

I read about 20 books that first month - A Random Walk Down Wall Street and the Intelligent Investor stand out. I also found an interest in microcaps - companies worth $150 million or less. I paid money to join an investment club geared solely toward finding microcap opportunities. I vetted three and decided on one because they had better access to microcap executives.

The first thing I did was learn how to dig into a company's financials. Obviously you smarter investors can do this, but this was a skill I had to learn. Once I was comfortable, I identified seven companies I wanted to pursue.

I picked up the phone and called Investor Relations and asked questions. One company, Kontrol Energy (KNRLF) had an executive contact me. Another one, Liquidity Service (LQDT) offered their web analytics guru to talk shop (I am fluent in that).

I didn't talk to an executive, but I did feel good about the direction of IPATF and bought in early.

Kontrol developed a device that will sell for $12,000 that detects viruses in the air. It passed "FDA" inspection in Canada and many government agencies and hospitals have placed orders. Its being tested in the USA now. I purchased that stock in May for 24 cents. It is $3.64 today and if it passes USA inspection, it will be $10 in 6 months.

Liquidity Services is a Dallas based company that specializes in surplus liquidation. They own sites like Govdeals.com that local governments sell their surplus for quick cash. This is more of a political play, but it has been good to me so far. I got in at 4.52, and backed the truck up and loaded up at 5.50. Its at 7.46 now after a pullback from the mid-8s.

If state and city governments fail to get funding, the sky is the limit for LQDT. Their web traffic is up 800% - people are looking for their services. The fiscal year is about to begin for many government entities. I expect we'll see another uptick soon. One of the respected members of the investing club sees $20.

Which brings me to the biggest winner, but my biggest miss. Immunoprecise Antibodies (IPATF) seems to have the early lead on antibody treatments. This week, they have been featured on CNBC. I read the profile when IPATF was selling for around .45/share. I didn't buy in until $1.50. Its at $2.11 after posting a high of $2.40 last week.

Point of the whole deal is that I have used the last six months to get smarter. I've strived to be the dumbest person in the room. Ive sat through Investor calls, Zoom meetings, etc. trying to pick up on things and have been rewarded. Since March, my net worth has increased 60%. I say this not to boast, but to encourage others.

Its more than ETFs and Apple. There is so much potential for growth out there, you just have to discover it.