When looking for new stocks, it's always a good idea for retail investors to see where the smart money traded by large institutional investors is going. After all, many of these investors are paid huge salaries to invest, and they are quite good at what they do. One stock that performed well in recent years is the billboard and broadband operator Boston Omaha (NYSE: BOC) , which many consider to be a mini Berkshire Hathaway .
Interestingly, Boston Omaha's co-CEO Adam Peterson founded another private fund called the Magnolia Group, which owns about a third of outstanding shares in a microcap stock with a $44 million market cap. Let's take a look at why a prominent investor like Peterson is investing so heavily in a stock that is clearly not receiving too much attention from the broader market.
Peterson and his fund Magnolia have beneficial ownership of 33% of Nicholas Financial 's (NASDAQ: NICK) outstanding shares, and Peterson also sits on the company's board of directors.
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The CEO of Boston Omaha Owns a 33% Stake in This Microcap Stock