My sixth year of learning as an investor - 2025
Here are my notes in the form of a guide, containing my thoughts, readings, learnings, postmortem, reflections that I conducted in 2025.
French version HERE
I don’t do an annual review of what went well or wrong or a letter to shareholders. Since last year I have been writing more about my learning report and lessons learned that are important to remember.
This text is written with my thoughts, readings, learnings, postmortems, and reflections from the year 2025. The sections may not flow easily, but their purpose is to serve as a guide/note for me to refer back to in the years to come. I hope it will generate value for other investors.
I think that the context is important. I started the year 2025 with an extremely capital-preserving mindset, North American markets were already very expensive and I believed and still believe that I should seek to have a portfolio as defensive as possible. What I mean by this were investments that I could lose as little as possible if we were to experience a correction or for any other reason. I wasn’t looking for the most profitable investments.
Why and How I Hunt for Micro-Caps
In my previous post, I looked back on my first five years of learning. It was a time of building, laying foundations, and understanding my own psychology. But once the foundations were in place, a crucial question emerged for any serious investor: where do I intend to fish?
Investing is not a zero-sum game, but it is a game of relative competition. And to win, it’s not enough to be good. You have to choose a game you can win and have the biggest advantage. I don’t limit myself to micro-caps. I focus on this area for several reasons detailed below. But I will continue to be open to opportunities, whether in small caps or large caps. Another area I will be paying attention to in the future, and which I began exploring in 2025, is preferred shares, which seem to offer a number of occasional opportunities.
The Tyranny of Efficiency (and how to escape it)
The choice of terrain (fishing ground) is often decisive for our investment performance, especially over a long period. This is the first lesson I learned, and perhaps the most fundamental one. Intelligence is not enough if you are playing an impossible game. This area can change over the years and with the cycle. In periods of overvaluation, I prefer safety and to be hypervigilant.In periods of fear, and hopefully of great opportunity, my zone will be wider.
The Myth of the “Genius”
Let’s start with an uncomfortable truth: trying to generate outperformance constant alpha on large caps is akin to statistical arrogance. I’m not saying it’s impossible, but it’s very difficult.
Take a company like Apple or Microsoft. As you read this, that company is being scrutinized by:
Thousands of sell-side and buy-side hedge fund analysts. High-frequency trading algorithms that react to news in microseconds. AI systems that analyze the tone of the CEO voice during conference calls.
Do you really think that by reading the annual 10-K report in your office or at home in your living room, you will discover “hidden information” that this battalion of experts and supercomputers has missed? The answer is surely no.
In this universe, the market is closer to being “efficient.” Prices reflect all available information almost instantly. Buying a mega-cap stock means buying into a consensus. If you are right, you earn what the market earns. If you want to “beat” the market here, you need to have a contrarian view that proves to be correct against millions of other minds. It’s possible, and there are a few opportunities like META in 2022, but it’s exhausting and rare.
The Law of Large Numbers and the Crowd Anomaly
There is a strange cognitive dissonance among individual investors. Millions of people invest their savings in the same 10 or 20 most popular stocks.
Is this a good thing? For capital security, perhaps. For exceptional performance, it’s a trap. When millions of investors and billions of dollars in passive flows (ETFs) flock to the same stocks, prices tend to disconnect from fundamentals and align with liquidity.This often results in valuations that are “priced for perfection.” The slightest disappointment leads to a sharp correction, and upside potential is mathematically limited by the law of large numbers (a $3 trillion company cannot double as easily as a $30 million company).
To find “inefficient” markets, we must leave the brightly lit highways of Wall Street and venture onto dirt roads.
The Flight into Darkness: Micro, Nano, and Pink Sheets
Market efficiency is not a constant, it is a curve. The lower you go in market capitalization, the more efficiency breaks down. This is where I believe our advantage lies, especially as small private investors. Why?
Imagine a pension fund or hedge fund managing $10 billion. For this fund to invest in a position that has an impact on its portfolio (say 1%), it must deploy $100 million.
It cannot invest in a wonderful Canadian or American company worth a total of $50 million. It would become the owner of the entire company before even deploying 1% of its capital. In addition, its compliance rules often prohibit it from touching stocks under $5 or listed on the Pink Sheets.
In the world of micro-caps and nano-caps:
You are not competing against Goldman Sachs or Renaissance Technologies.
You are not competing, or very little, against people who have advanced degrees in the field with more than 15 years of experience and who use tools that give them an advantage over you.
You are competing against the dentist who trades on his phone between patients, or against a tired family fund that has held the line for 10 years without looking at the numbers.
In this world, prices are often inefficient. They often deviate from intrinsic value (overvalued or undervalued). A company worth $60 million may trade at $20 million simply because it is “boring,” “too small,” has a complicated capitalization with A and B shares and a mix of preferred shares, or because a large shareholder had to sell to pay taxes, crushing the price for no fundamental reason.
This is where analysis pays off. Reading a 20-40 page annual report (one of the advantages of micro-caps is that their reports are short, because they are much less complicated than $10 billion companies) on a company that no one follows gives you a real, tangible, and exploitable informational advantage.
Not to mention that the next 100-Baggers are found in micro-caps. New inventions and products all start out as micro-caps, and being able to identify them early on gives us a big advantage.
There is no price for complexity
One of the biggest psychological hurdles for an investor (myself included) is the need for intellectual validation, or not wanting to look foolish in public.
We all tend to want to find the best complex idea: a technology company we don’t understand, a mining project with incredible potential, or a revolutionary biotechnology company. Why?
Because it flatters our ego. It makes us feel smart. But above all, it gives us hope of a quick big win and the dream of being able to retire early with our investments.
The market does not reward complexity. The market couldn’t care less about the difficulty of your thesis; worse still, it will be difficult to discover, except in times of euphoria when history is more important than fundamentals.
For example, if you spend 200 hours modeling a complex bank and it makes 100%.
Or if you spend 20-30 hours identifying a small industrial company that trades at 6x earnings and it goes up 100%.
Which is the best idea?
Absolute performance is the only thing that matters. No one will ask you whether your money comes from a sophisticated thesis on Nvidia or a company that develops and produces nutritional products for animals in the Midwest. I’m not looking to become the “best mega-cap analyst.”
My goal is to become the investor with the best absolute performance, even if my investments may seem obscure, illiquid, or boring to the general public.
It is by agreeing to play where others do not want to (or cannot) go that one can outperform the markets over a long period.
The liquidity of a security
One of the important things I learned in 2025 is liquidity. If efficiency is the strategic enemy, liquidity is the tactical trap. In the world of large caps, liquidity isnot a problem.Want to buy $100,000 worth of Amazon shares? Click a button, and it’s done. The impact on the price is zero, and the spread is a fraction of a cent.
In the world of micro-caps, liquidity is scarce or even non-existent for several days. Sometimes there is an oasis, sometimes it is a total drought.
Understanding this “liquidity mechanism” is important. We are happy to be the only Bid side when we are buyers, but when we are on the Ask side, this becomes very unpleasant.
There are several tools available for monitoring Level 2, but they tend to be quite expensive, especially if you invest in multiple markets. However, there are low-cost solutions that may be offered by your broker. I use Stockwatch for some of my needs, and one of my four brokers offers me Level 1 & 2 free (we must have a portfolio of a certain size with the broker) for the TSX and TSX Venture. For the US market, I have another broker for that.
To help me track Levels 1 and 2 on stocks with very low liquidity that I am looking to buy or sell. I use alerts based on the Bid or Ask price, alerts on the volume offered, etc. This already allowed me to make a very good deal in 2025 when one person wanted to buy and another wanted to sell a very large block at a price I couldn’t pass up.
My learning in systems also taught me how a buy or sell order can be sent to ATS (Alternative Trading Systems), which will influence the success of our purchases or sales. I learned this early on, and it was a great help to me in 2025. That’s why I use several brokers (soon to be five). When I place my purchase with four different brokers that are not linked to each other (this is important), we have a better chance of being the buyer. One broker, for example RBC, has more advantages in doing the transaction between RBC clients.
The Invisible Toll: Spread and Level 2
The first thing that surprises you when you start looking at micro-caps is the huge Bid/Ask spread. With micro-caps, it’s not unusual to see a bid of 0.40 and an ask of 0.45. That’s a spread of 12.5%. If you change your mind a second later and decide to sell (at the bid price), you have lost 12.5% of your capital. This is a huge entry fee that you must overcome through the company fundamental performance.
So you need to master reading Level 2 (the depth of the order book and the history). You can’t invest blindly. You need to see:
Who is on the other side? Is it an algorithmic market maker playing with the spread to capture a few cents? Or is it a real, tired investor looking to liquidate a large position? Transaction history: Look at past volumes. If the stock trades an average of $10,000 per day and you want to invest $50,000, you can’t enter all at once.
Placing your purchase all at once may attract a motivated buyer who will purchase your entire block at once. But one thing I’ve learned is that when we are alone or very few are bidding, we have the power to bring the price down in our favor. To bring sellers over to our side.
A motivated seller who is monitoring the stock to exit will often monitor Level 2, so you can place your purchases in smaller blocks, for example 5 blocks of $10,000, to try to bring down the seller price. Buying or selling in micro-caps sometimes requires patience, and I made this mistake of impatience in 2025. We have to wait for the seller to come to us, not the other way around. Patience in execution is a financial virtue.
This is not true for all micro-caps, but when it does happen, it is important to remember a few things to increase our EV.
The discount for lack of liquidity
In classic books (such as those by Benjamin Graham), the “margin of safety” serves to protect us if our analysis of intrinsic value is wrong. In micro-caps, this definition evolves. The margin of safety also becomes a protection against illiquidity. We must add a discount for this lack of liquidity, which can range from just 5% to more than 50% of the value.
Imagine the worst-case scenario: the thesis is invalidated, bad news breaks, and you need to get out. In a microcap, when everyone wants to get out, the door is tiny. The bid disappears. The stock can fall 30% or 50% on ridiculous volume simply because there are no buyers.
I made this mistake at the beginning of 2025 and lost around 50% of my investment. I had estimated that the discount for lack of liquidity was not significant for this investment, which was a big mistake. I had to sell quickly and the bid side could not withstand the pressure from sellers. That’s why the initial purchase price is vital, as is the sizing of the position in the portfolio.
In summary, a margin of safety is good, but we must also add a discount for lack of liquidity. I must buy at a price that incorporates this illiquidity discount in the event of a forced sale to another investor who will normally demand this discount. If I don’t have this margin at the outset, then the future buyer may charge me the bid price.
The Self-Fulfilling Prophecy of Silence (Seasonality)
There is a fascinating psychological phenomenon that dictates the rhythm of micro-caps, particularly in Canada and in the natural resource sectors (the “Juniors”).
The story of a CEO of a mining exploration company. It was the middle of summer, his stock price was stagnant, and he was visibly frustrated:
“It’s the middle of summer and nothing is happening. Investors think we’re on vacation. That’s not true! A lot is happening: we’re drilling, analyzing samples, negotiating agreements, and preparing fundraising campaigns. But what isn’t happening is the flow of information.”
Why? It’s a self-fulfilling prophecy, a vicious circle of financial communication:
The market is quiet (summer or Christmas period/tax loss selling). Volumes are low because investors are at their vacation homes or with their families.
The company is afraid. The CEO is hesitant to publish excellent news (good drilling results, a new contract) in this vacuum, for fear that the news will be ignored (”fall on deaf ears”) and will not move the stock price.
Information retention. The company decides to “hold back the news” until fall or January, when volume will return.
Stagnation. The market, seeing no news coming out, assumes that nothing good is happening or that the project is dead. The price slowly erodes due to boredom.
This cycle creates periods of artificial price depression, often in August or December (during “tax loss season,” when people sell their losing stocks to optimize their taxes).
The Opportunity for Active Investors
For me, this is a opportunity. Most investors buy the noise (the news). We need to buy the silence.
If you have done your homework, understand management, and know that the company is working hard behind the scenes, this silence is your best friend. This is when the gap between operational reality (things are moving forward) and stock market reality (things are dormant) is at its widest.
It is during these lulls in liquidity and news that positions are accumulated, waiting for the floodgates of information to open and the market to finally wake up.
There are now publicly available, affordable tools for obtaining advance information. Continuing with the mine example above, we can use Skyfi. This is a land intelligence service specializing in on-demand satellite imagery and analysis. With just a few clicks, you can obtain (after a certain amount of time) a high-quality image of a region of the globe for around $1,500. For example, if between two images you see that the mine area has 5x more cars and equipment, this could be a sign of good news to come.
The Human Factor (Betting on the Jockey)
I mentioned this in my previous article, Five Years of Investing, but it is so important that I must discuss it, especially my learning process.
Management analysis is an underestimated art, but one that is very difficult to master. And nowhere is this art more critical than in the world of micro-caps. I still have very little experience in this area, and I think it will take me more than 10 years to become good at it.
Investing in a mega-cap such as Microsoft or Johnson & Johnson means investing in a system, a brand, an economic moat. If the CEO is mediocre, the inertia of the structure and the strength of the balance sheet will allow the company to survive, and even thrive, for years before the damage becomes apparent. It’s like an ocean liner, it takes miles to change course.
A micro-cap, on the other hand, is an outboard motorboat, sometimes even a simple raft. The captain (CEO) has his hands directly on the helm. One sudden turn of the wheel, one error of judgment or one ethical lapse, and it’s immediate disaster. Conversely, a visionary pilot can transform this raft into a yacht in record time. In micro-caps, we’re not just betting on the horse (the business model), we’re betting above all on the jockey.
Incompetence is also costly.
When we talk about risks in micro-caps, we immediately think of the Wolf of Wall Street: fraud, theft, pump and dump schemes. These are real risks, but they are often easier to identify than a much more insidious and widespread risk: honest incompetence.
The world of micro-caps is full of “nice,” honest executives who are completely incapable of taking their companies to the next level or unlocking value quickly.
They are technically excellent (geologists, engineers, inventors), but financially disastrous. They lack strategic vision for marketing or capital allocation. They are content to manage the status quo.
The result for shareholders is dead money. The company doesn’t go bankrupt, but it doesn’t move forward either. The share price stagnates for years and the opportunity cost slowly kills the company. We need management that has the motivation and competence to create growth, not just to “run the shop.”
We must be strict about this and quickly cut our losses if we think that the management in place is this type of person. The big risk is not being able to identify this early on in order to sell quickly. This has happened to me a few times and will continue to happen for several years to come because it is difficult for me to identify this with little interaction with management.
Management Alignment
I didn’t mention this in my previous article (5 years of investing), as it’s something that many investors are already well aware of. Tracking insider purchases and sales is important. There are several tools available, both free and paid, but one lesson I’ve learned in recent years is to always use the official source.Other solutions may have delays, bugs, or problems that can prevent you from getting the most up-to-date, accurate information as quickly as possible.
When I first start analyzing a company, I begin by looking at the proxy statement (section: executive compensation). I have not invested in several investments because of what I consider to be poor alignment. These investments seemed very promising and were quite successful, but ended badly. This seems crucial to me in order to sleep well at night and hope that management is working for shareholders. The micro-cap categories I avoid like the plague are “lifestyle companies.” The CEO earns $500,000 a year to run a company worth $10 million with little growth and low margins. For him, the company is a success: it pays for his mortgage, his car, and his luxury vacations. For me, it’s a value-destroying machine.
Not only in special but very important situations on arbitration, merger and spin-off. I need to pay attention to the "Tax Gross-Ups" and change of control clauses.
Due Diligence on Management (Forensic HR)
Before investing a single dollar, I turn into a paranoid recruiter. I don’t settle for the glossy bio on the company website (”Mr. X has 20 years of experience...”). I dig deeper.
Here are a few items from my checklist for the CEO, CFO, COO, Chairman, etc.:
The actual track record: Have they created value for shareholders in the past? Or do they have a long list of companies that ended up worthless under their leadership? History tends to repeat itself.
Academic and professional integrity: What is their educational background? Did they attend reputable institutions? (This is not snobbery) A CFO who does not understand the intricacies of accounting is a ticking time bomb.
The reputation of management in the industry is important. I look for interviews and feedback from former employees, for example on Glassdoor.
Also keep an eye out for lawsuits against board members or management; there are several free or low-cost services available. (CourtListener or OffshoreAlert)
This was very useful to me in an investment that I did not make because of lawsuits against the CEO and Chairman. The investment was a deep-value type and performed over 100% in a few months. But that doesn’t bother me at all. I did my job and I don’t think I missed an opportunity. Only that other investors may not have done theirs properly.
Next, check the composition of the board.
In small-cap companies, governance rules are often lax. The board of directors is often made up of the CEO friends. There are few checks and balances.
As a minority shareholder, we are vulnerable. When a financing opportunity arises, will management take advantage of it on preferential terms (issuing shares at a discount) or will they protect the integrity of the capital structure for everyone? If I have the slightest doubt about the ethics of management, I pass. It doesn’t matter if the assets are undervalued by 80%. Dishonest management will always find a way to transfer the value of the company assets for its own benefit.
I think it was two years ago, but I analyzed a company worth around $500 million that had a private jet, and it was proven that the CEO wife and children were using the jet for personal purposes.The board was under the CEO control, so it was almost mission impossible for an activist. Or another story well known to Pink Sheets investors in 2025: a company had acquired real estate in Florida or Las Vegas, and the CEO was using the houses for his vacations or personal purposes at the shareholders expense.
The Skeptical Optimistic Detective
Once the investment has been made, most investors make a fatal mistake: they fall in love with their position. They go into “sports fan” mode, reading only the positive news and dismissing any criticism as “FUD” (Fear, Uncertainty, Doubt).
In the world of micro-caps, blind optimism is dangerous. To survive and outperform, we must adopt a completely different mindset: that of the paranoid detective, or rather an optimistic skeptic. I don’t just look for the negatives, but try to balance the good news with constructive criticism, to be skeptical and question things.
Looking for the Flaw / Risk
Once again, this article is based on my past notes. I can’t remember which Substack article I found this quote from George Soros in, but I love it and I use the same process for my investments.
George Soros has a counterintuitive approach to conviction. He doesn’t try to prove himself right. He desperately tries to prove himself wrong.
“I look for the flaw in every investment thesis. When I find it, I feel reassured... My sense of insecurity is satisfied when I know what the flaw is. It doesn’t make me discard the thesis. On the contrary, I can play it with more confidence because I know what’s wrong when the market doesn’t.” — George Soros
If you only know the positive aspects of a company, when the share price drops 20% for the first time, you will panic. You won’t know if it’s a buying opportunity or the beginning of the end.
On the other hand, if you have identified the flaw (for example: “Their largest customer accounts for 30% of revenue and the contract expires in December”), you monitor this specific point. As long as this risk does not materialize, you can rest easy. You have “priced” the risk. You are ahead of the curve.
Find potential insider purchases before anyone else
It is easy to identify the brokers that insiders use for illiquid companies. With their public transaction documents, we can find the date and even the time of their purchase to identify the broker used. This is common knowledge, but it can help us identify potential insider purchases in advance.
Then, with a service like Stockwatch, which provides you with a history of transactions by broker, all you have to do is a little manual research. I’ve managed to do this on a few files, but so far it hasn’t been of any value to me. But like any informational advantage, it may not be useful all the time, but one day it may be very useful and pay off.
Public but Ignored Information
In large capitalizations, information is universal. If Apple loses a lawsuit, the information is integrated into the price in 0.5 seconds by algorithms.
In micro-caps, information is public, but ignored. This is a gigantic nuance. The information exists. It is there, somewhere on the Internet, in a government registry or in a local newspaper. But since no one is looking, the stock price does not reflect it yet. This is where our advantage (Edge) lies as a micro-cap investor. Our job is to find this information before it is summarized in an official press release.
Examples of detective work (Scuttlebutt):
Alternative data: For a retail or e-commerce company, do not rely on the CEO promises. Track web traffic (SEMrush), the number of app downloads, or even satellite images. Or for example, track the evolution of the price of “blood meal” via the USDA website.
Social media monitoring: We can find good useful information on LinkedIn or other networks that doesn’t merit a press release. For example, order delivery or signing a small client.
Legal monitoring: Use tools to scan new litigation (as written above: CourtListener, OffshoreAlert, etc...). A micro-cap can be sued by a supplier or a competitor without disclosing it immediately. If you find the file in court before the market, you can exit before the crash.
Interviews with former employees or experts: Seek to speak with former employees or experts related to the company. Whether friends, acquaintances, or via Tegus interviews, it is a goldmine of information that can give you a big short-term advantage. And in the long term, the knowledge acquired on different industries is very useful for an investing career.
Forensic employee analysis: Go on Glassdoor or LinkedIn. A wave of departures among key engineers? Employee reviews complaining?
Local registries: For a mining or real estate company, permits are often public on municipal or county websites. You can know if drilling was approved or refused weeks before the company writes its press release.
Tracking real estate sales: For example, use real estate broker sites to follow the progress of a property sale. Agents are very quick to change a listing to sold, well before the press release comes out. (Don’t call the agents to get the information, you will be the 100th to do so and they are used to not answering.)
This list could go on, but I prefer to stop here to keep my advantage. 😁
Active Monitoring: Building Your Dashboard
Passive investing (”Buy and Hold”) rarely works if we want to achieve exceptional returns. We need to be in “Active Monitoring” mode. I don’t just look at the price or quarterly report for each position in my portfolio. I create a dashboard of KPIs specific to the thesis. I use the Notion app to take notes and track everything related to the company. And as a software developer, I have the skills to develop dashboards that can track specific metrics.For example, for an investment, I can track the number of sales made by an e-commerce site in real time, which gives me an advantage in estimating future quarters.
For example, if my thesis (catalyst) is: “This company will increase production at its X plant,“ I don’t look at overall net profit. I look to track:
Monthly production volumes. If it is an improvement to an existing factory, then by how much should it increase?
The cost of raw materials. As mentioned above, use any alternative information.
Job offers for factory X or the region.
This allows us to estimate future quarters and be prepared. We can make buying or selling decisions based on figures rather than emotions. If the KPIs turn red, I sell. If the KPIs are green but the price drops, I buy.
Here is one of my personal dashboards created with Apache Superset. It means I no longer need to download the latest PDF to check the figures and update my Excel file. It’s automated and can be easily monitored over the long term.I know this isn’t within everyone reach, I just want to show that you should use your skills to increase your advantage. And with AI, it’s become easier to create this type of dashboard.
Active monitoring increases expected value
By closely monitoring my investments and remaining in active monitoring mode, I can increase my chances of return. This reduces my risk and allows me to reduce the percentage allocated to the bear scenario. This methodology goes far beyond simple protection. It mathematically increases my expected value.
In micro-caps, movements are violent. Good news can cause a 50% rise, bad news a 50% fall. If your detective work allows you to: Sell two days before bad news (avoiding the 50% fall) or buy two weeks before the market understands good news (capturing the 50% rise) you’re not just marginally improving your return. You’re changing the very nature of your capitalization curve. You’re cutting off the left tail of the distribution (the risk of ruin) while maximizing the right tail (the explosive potential). That’s the real job of a micro-cap investor who wants gain the best advantage. It’s private investigation applied to the financial markets.
2025
In conclusion, I learned a lot during 2025. I made many mistakes, it was a very difficult year for me in terms of investing, and I failed to achieve my return objectives.
I end the year 2025 with a return of 24% and my IRR from the beginning has dropped to 27% (6y). I am disappointed with my year, not for the performance, even if it is rather normal if we consider that the TSX (Canada) finished the year (2025) at more than 29%. My disappointment is caused by several errors, poor value investments (this type of investment represented a large portion of my portfolio) that cost me more than 20% of my 2025 performance and my choice to be in defensive mode caused by Canada & US markets overvalued. I will reduce my number of value-type investments and special situations to the strict minimum for 2026, even if I have to keep a larger portion in cash.
In 2025, I had to roll over a large portion ( 20%) of my portfolio every 2-3 months across several special situations due to a lack of good quality investment ideas. Special situations increased my turnover.
What’s next
I still consider myself a beginning investor, but I think I have reached a stage where I can be more confident in my decisions. Due to the lack of training in this field, I am forced to catch up with all professional investors. I will continue to read more about investing and experiment as much as I can. I hope to reach a level similar to that of a professional by my 10th year.
Looking back since the beginning of 2019, my most notable investments were of the Holy Grail variety (Graal). These are investments that tick all the boxes on my checklist and, above all, have significant growth potential with a good ROIIC. If only I had had a portfolio of just 4-6 stocks in this type of company, I could have achieved an IRR/CAGR of over 47%. But I don’t think this would have been wise given my limited experience at the time. I have always had between 9 and 18 positions in my portfolio, but with experience, I think I will focus more on Grail-type investments and concentrate my efforts.
I would like to mention that I have never used leverage, and this is something I will start using in 2026. I think I have learned a lot over the past six years and I am well positioned to use leverage wisely. I plan to use a maximum of 20% leverage to help boost my returns.
Another thing I started experimenting with in 2025 is short selling. This will be a new area of investment for 2026 that I think is very promising in an overvalued market. And this will allow me to be less stressed about this overvalued market if I have downside exposure via a few shorts. I am currently focusing on small-cap and mid-cap stocks for this type of investment. Micro-cap stocks offer a few opportunities that I have identified, but they are often very risky due to their lack of liquidity.
And since the end of 2025, I started looking at the European market. I never wanted to invest in other countries because I don’t know the culture of the country, and I don’t have the time to learn about and follow a new investment area. But for now, I think I have no choice but to start investing there gradually until I find good opportunities in Canada or the US.
Max