INDEPENDENT AND UNBIASED
STOCK REPORTS THAT CATERS TO THE INDIVIDUAL EARLY STAGE INVESTOR
WE HELP YOU FIND THE BEST START-UP AND SMALL-CAP COMPANIES.
Why invest in Penny Stocks, Micro and Small Cap Companies?
The primary advantage of investing in individual small-cap stocks is the significant upside growth potential that is unmatched by larger companies. Mergers and acquisitions, which are not uncommon among Start Up and Small-cap companies, represent another opportunity for small-cap investors.
Small-cap stocks tend to have higher growth rates. It is easier for a smaller company to double its sales, while more mature companies typically experience slower sales growth. In fact, some of the biggest companies in the world once traded in the small-cap range.
Many Stock Market Stars started out as
Start-ups or Small caps
If you had bought some of today’s blue chips, like Amazon and Netflix, when they were still trading as small caps and held them, you would have seen an increase in value of more than 100 times your initial investment.
Although small caps have historically outperformed large caps, that doesn’t necessarily mean your portfolio should consist of only small companies. However, startups and small caps belong in every growth portfolio, not only for reasons of diversification
Advantages and Risks of Small Cap Investments
The Most Important Rule in Investment is:
Diversification is not designed to maximize returns, you need diversification to minimize investment risk. Over time, a diversified portfolio generally outperforms the majority of more focused ones.
One key to diversification is owning investments that perform differently in similar markets.
There are plenty of different diversification strategies to choose from, but their common denominator is buying investments in a range of different asset classes.
For example, stocks are an asset class, as are bonds, cash, real estate and alternative asset classes like commodities and cryptocurrencies.
Stocks can be further subdivided into Asset Classes
Mistakes Investors make when they diversify:
Stock investors often include too many stocks in the portfolio. Many studies have shown that excessive stock inclusions di not actually reduce risk after a certain number of stocks. The general consensus amongst equity analysts and scholars point to anywhere from 15 -30 stocks.