Investing: Bet the Jockey Not the Horse

Lately I have been asked—in various ways—“How do I go about picking winners in the Small Cap Companies, Initial Public Offerings, Start-ups and Private Held Companies for Investment?” Well, since my personal win/lose ratio is about 80/20 (more winners than losers), you might expect me to go into some detail about reading the financial statements; looking at price-to-earnings ratios; using arcane calculus formulations; or observing mystical patterns in the trading activity of the stock.