Analyzing the performance of our long-term penny stock investing strategy

Since 1976, The Bowser Report has been dedicated to helping investors succeed in the world of long-term penny stock investing—focusing on those trading for $5 or less per share. Over nearly five decades, this focused approach has proven remarkably successful. According to our latest performance update, The Bowser Report’s model portfolio has generated a lifetime return of 458% (since 2001), which translates into a compound annual growth rate (CAGR) of 7.59%. This track record even slightly edges out the S&P 500’s CAGR of 7.17% over the same time frame.

A Proven Strategy for Small-Cap Success

The secret behind this long-term outperformance lies in The Bowser Report’s disciplined investment portfolio management strategy known as the Bowser Game Plan. Rather than chasing hype or speculation, the Game Plan emphasizes:

  • Buying stocks priced under $5/share
  • Maintaining a diversified portfolio of 12–18 small stocks
  • Setting clear entry and exit points to avoid emotional trading decisions
  • Strict adherence to a sell discipline, particularly taking profits and cutting losses
  • Holding winners as long as their fundamentals remain intact

A 2021 external study by a subscriber found that long-term penny stock investing with the Bowser Game Plan resulted in an impressive 39% internal rate of return (IRR)—significantly outperforming both a buy-and-hold strategy of the same stocks and buying and holding a broad-based small-cap ETF.

A Research-Driven Approach

One of The Bowser Report’s defining features is its proprietary Bowser Rating System. Every stock is evaluated based on a set of fundamental factors including:

  • Financial strength
  • Revenue and earnings growth
  • Management quality
  • Industry prospects
  • Historical trading behavior

Companies of the Month must boast a rating of 8 or higher. This rigorous screening ensures that only the most promising opportunities make it to subscribers.

Big Winners Along the Way

While The Bowser Report encourages diversification to manage risk, it has also successfully identified some massive winners over the years. Most recently, TSS, Inc. (TSSI) surged 4,292.6% in 2024, earning it the title of Bowser Stock of the Year. Success stories like this demonstrate the explosive potential of small-cap investing when supported by careful analysis and disciplined execution.

Why This Matters to Investors

For investors interested in the volatile but rewarding world of long-term penny stock investing, The Bowser Report offers a unique advantage. Unlike many speculative newsletters that rely on hype, Bowser has cultivated a track record of consistency, research-backed picks, and a clear, repeatable process. The numbers speak for themselves: steady long-term growth, beating the market, all while focusing on an often-overlooked segment of the stock universe.

In short:
➡️ Disciplined process
➡️ Fundamental analysis
➡️ Defined Game Plan
➡️ Proven long-term returns

It’s a powerful formula that has stood the test of time.