Can you invest $200 in penny stocks or what you call micro caps and grow that investment to something like $100K or even $1 million over the next few years? Many people don’t consider micro-caps to be serious investments. There is some truth in that. But do you know a guy who turned $1K into $1M in just 1 month with penny stocks on just 38 trades? Or do you know the person known as the Penny Stock Billionaire?

So why microcaps? There are thousands of stocks in markets like technology, agriculture, healthcare, commodities, energy, and more. But what makes penny stocks different from regular stocks is that they are very cheap. Most of these micro caps trade for as little as $0.1 per share.

Imagine, finding out that a stock that costs $0.1 per share skyrocketed to $10 per share in a matter of, say, a few weeks. That’s a 10,000% profit. So with micro caps, you have the potential for an explosive profit and with the price as low as a few cents to a few dollars, small investors can play with them too.

Now the problem with most stocks is that they take too long to show a capital gain. For a stock to go from $50 a share to $100 a share it can take a few years. But a stock priced at $1 per share can easily double overnight. Hey, it’s only a dollar.

So with penny stocks, you can get rich at the speed of light and also get poorer at the same speed if you don’t invest in them cautiously. The best way to invest in penny stocks is to start with $200. Grow that $200 into $1000! That $1000 into $10,000. That $10,000 into $100,000. You have the image.

In recent decades, penny stocks have regularly outperformed regular stocks by wide margins. In 1939, John Templeton bought 100 shares of all companies trading for less than $1 a share. In the following years, his investment multiplied many times despite the fact that many of the companies in which he had invested went bankrupt.

This shows that the profitability of penny stocks. John Templeton finally retired as a billionaire and spent the rest of his days in the sunny and carefree Bahamas. John Templeton graduated from Yale and was a pioneer in investing in diversified mutual funds globally. But the success of him had started with his plan to buy 100 shares of all previously listed companies for $1 a share.