Only 5 Small Company Stocks in Top Club Buys for January 2023


A properly-diversified portfolio requires holding small, mid, and large companies.

Of the top 100 stocks bought by investment clubs using in the month of January 2023, only five companies had annual revenues less than $1 billion, the cutoff for our definition of a "small" company. Stocks of these companies are often more volatile than large company stocks, but they can offset that volatilty with faster growth and a higher rate of total return, as well as a tendency to perform differently during different periods of broad market cycles. That's why it's a great idea for clubs to maintain a good level of exposure to small company stocks.

Here are the five small company stocks purchased most frequently in the month:

Ticker Company Industry TTM Sales ($)
LTHM Livent Corp Specialty Chemicals               420.4
INMD InMode Ltd Medical Devices               357.6
CLFD Clearfield Inc Communication Equipment               270.9
IIPR Innovative Industrial Properties Inc REIT - Industrial               204.6
RIVN Rivian Automotive Inc Auto Manufacturers                 55.0

It should be noted that Innovative Industrial Properties is a real estate investment trust (REIT), and thus is not recommended to be owned by investing partnerships due to the accounting complications they cause for treasurers at tax time. (Likewise, publicly-traded limited partnerships will frustrate treasurers when they try to prepare their clubs' tax returns, and so should also be avoided.)

Three of these five stocks are recent recommendations of our SmallCap Informer stock newsletter. If you're looking for small company stock ideas for your investment club or personal portfolio, see just how affordable a SmallCap Informer subscription can be.

Click here to see the rest of the current Top 40. is the world's most popular tool for investment club accounting and operations. Sign up for a free trial to see for yourself why thousands of investment clubs choose to manage their club's books and operations.

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