In this Skull Session, Lukas and I dug into a topic that’s becoming more debated across microcap investing circles: whether investors should be thinking in shorter timeframes as holding periods continue to compress. My view, and Lukas largely agreed, is that broad statements like “hold for six months” or “everyone should be shorter term now” miss the nuance. Time horizon should flow from the actual thesis. Some setups are catalyst-driven and may play out in a few quarters, while others require years of operational execution to realize their value. The mistake investors make is treating time horizon as a strategy in itself, rather than as a byproduct of the opportunity in front of them.
We also talked through the practical reality that short-termism isn’t inherently bad. Everyone wants returns quickly, but it becomes dangerous when it pushes investors into chasing low-quality stories, pump-and-dumps, or promotional themes simply because they appear to be moving. In my own experience, some of the best returns have come not from blindly “holding forever,” but from identifying pockets of explosive growth or clear catalysts before the market fully prices them in. That said, long-term investing has its own traps. Investors can become lazy, using “I’m long term” as an excuse to ignore deteriorating execution or avoid making difficult sell decisions when management underdelivers.
One of the biggest themes from our conversation was the importance of staying adaptable. In the nano- and micro-cap world, there are opportunities on both the short- and long-term side, but only if you stay focused on the thesis and are willing to adjust as facts change. We also talked about how the investing landscape is evolving. More retail investors, better AI tools, and faster access to information are making it harder for hidden opportunities to stay hidden for long, which means finding catalysts and acting early matters more than ever. We wrapped up with Lukas breaking down his quick look into VersaBank, including its U.S. expansion, steady growth in its receivables financing business, and upside potential from newer fintech and AI-related initiatives.
Skull Sessions is a collaboration with Geoinvesting.com, a full-stack microcap research platform and MS Microcaps LLC , home of the Microcap Quality Index (MSMqi).
Key Points Discussed
Fixed Holding Period Rules Can Be Misleading: Every investment thesis has its own timeline
Time Horizon Should Match the Opportunity: Some setups play out in months, others take years
Short-Termism Isn’t the Real Issue: The problem is chasing hype over fundamentals
Catalyst Investing Still Works: Big moves often come from spotting inflection points early
Long-Term Investing Has Risks Too: Patience can turn into complacency if you’re not careful
Management Execution Is Key: Continued execution may justify holding through volatility
Nano Caps Remain Inefficient: Strong businesses can stay overlooked for long periods
Conviction Must Be Balanced With Flexibility: Avoid both panic selling and overholding
AI Is Changing Research Dynamics: Faster tools may shrink market inefficiencies over time
Investor Psychology Creates Opportunity: Short-term narratives can lead to mispricing
Stocks Discussed
VersaBank (TSE:VBNK): Discussed as a longer-term holding tied to U.S. expansion, receivables financing growth, and fintech/AI optionality.
TSS Inc. (Nasdaq:TSSI): Referenced as an example of a painful long-term hold that ultimately worked after major volatility.
KORU Medical Systems (Nasdaq: KRMD): Mentioned as an example of a catalyst/fundamental trigger investment.
Ceco Environmental Corp (Nasdaq: CECO): Referenced as another example of a thesis-driven investment.
