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5 Best Small-Cap Value Stocks to Buy According to Bares Capital

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In this article, we will list the 5 best small-cap value stocks to buy according to Bares Capital. Please visit 10 Best Small-Cap Value Stocks to Buy According to Bares Capital if you would like to see the extended list and the methodology behind it.

5. Wayfair Inc. (NYSE:W)

Bares Capital Management’s Stake: $60 Million

Wayfair Inc. (NYSE:W) is a long-term holding in the 13F portfolio of Bares Capital. The fund first disclosed a stake in the company back in the first quarter of 2019. This position comprised a little over 1.5 million shares. By the first quarter of 2021, the fund had grown this holding to more than 4.7 million shares. Thereafter, it started trimming this position, reducing it to over 2.5 million shares by the middle of 2022. Another buying spree was registered after this during which the fund grew this holding to around 5 million shares. Since then, the fund has been trimming the stake. Filings for the third quarter of 2025 show that the fund owned 672,000 shares in the firm, down a little over 8% compared to filings for the previous quarter.

Wayfair Inc. (NYSE:W) is being targeted by elite investors as the firm has an uncanny ability to capture market share in a wobbly home-goods sector while expanding physical retail footprint. In the most recent earnings cycle, Wayfair signaled a strategic pivot that attracted growth-oriented hedge funds. Management noted a willingness to let gross margins dip slightly below 30% in exchange for faster market share gains. Large institutions often prefer a company that leans in during industry downturns. Funds are betting that by undercutting competitors now, Wayfair will emerge as the dominant, high-scale winner when the housing and furniture markets fully rebound in late 2026.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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