Long term investing in small caps: 5 stocks from niche areas & having experience of dealing with competition

What is the best and worst part of investing in small caps? If one gets the right stock, returns are very high. The worst, it is not easy to find a small cap stock and the risk of going wrong is higher. So, why not look for companies which have seen and beaten competition and are on stronger footing than the majority. 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. What happens is that while they are small, but they are doing good for a long period of time, their cash positions become strong and that is the key to small cap investing.