An FMCG company, which operates in extremely niche and small markets but no competitor has been able to beat it for the last three decades. A crockery maker which makes tableware and has been able to beat the best of the competition which comes from China made products. There are some businesses, which are small in size, but they are dominated by one or max two players which have perfected the business so well that even the best of the competition which can be in form of imports or a large player entering into that segment cannot do any harm. What happens is that while they are small, but they are doing good for a long period of time, their cash positions become strong. When looking at small caps just check if that company has some advantage, it could be product, brand, niche segment and it meets certain financial criteria than buy them and ride the rally over the long term.
