Investing in small-cap stocks isn't for everyone. By their very nature, these companies have the deck stacked against them. In the real world, the Davids (small caps) usually lose to the Goliaths (well-funded megacaps).
But every now and again, a small-cap stock breaks through. When it happens, the financial gains are enormous. Case in point: Netflix was a $1 billion company in 2003. Today, it stands at over $140 billion. A $10,000 investment is now worth $1.4 million.
Today, I'll introduce three small-cap stocks ($5 billion or less in valuation) to consider buying heading into 2020. All three use the powerful software-as-a-service (SaaS) business model and are carving out potentially dominant positions in their niches. Who knows where they'll be 10 years from now?