🥊2023 Small-Cap🧢 Stocks VS Large-Cap🎩 Stocks🥊
Some definitions 1st:
(1) Large-cap🎩 stocks have a market capitalisation of more than $10 billion.
(2) Small-cap🧢 stocks generally have a market capitalisation of below $2 billion. (3) Mid-cap stocks fall in between $2-$10 billion.
Generally, Large-🎩 stocks are stable & less risky than Small-🧢 stocks. However, that also means that the potential upside for Small-🧢 stocks are greater & riskier than Large-🎩‼️
Large-🎩 stocks are often more mature companies that are not seeking aggressive growth (e.g. Walmart & Coca-Cola) whereas Small-🧢 companies are nimbler in the market & are known to be potential high growth stocks.
The graph below compares Wilshire 🇺🇸 Large-🎩 to Small-🧢
⭐️ If the ratio is above 1.0, Large-🎩 outperformed Small-🧢
⭐️ If the ratio is below 1.0, Small-🧢 outperformed Large-🎩
The data shows that since around Nov 2002, Small-🧢 stocks have consistently outperformed Large-🎩 stocks for 20 years‼️
🤩😍 Remember that current Large-🎩 stocks started out as Small-🧢 stocks! APPL🍎 TSLA🔋🚘 AMZN📦 & $Microsoft(MSFT)$
However, what is true for 🇺🇸 stocks is not true for Australian🇦🇺 stocks! Data from Foresight & Refinitiv show that up to August 2020, over the medium to long term period (3-years, 5-years, 10-years and 20-years), Large-🎩 in 🇦🇺 outperformed Small-🧢. Only when looking at the 1-year return did Small-🧢 outperform by “losing less”. So for ASX, investors should look for 🎩-Cap stocks.
Fellow 🐯🐯🐯, which Small-🧢 tech companies with a 100% buy rating $Smart Global Holdings Inc.(SGH)$ $OptimizeRx Corporation(OPRX)$ $Digital Turbine(APPS)$ will you consider buying & why❓Or will you be be safer like me & lesser profit but keep our capital safer by buying APPL🍎 TSLA🔋🚘 AMZN📦 & MSFT/GOOGL💻❓
Love a convo so do share your thoughts in the comments section❣️ Please help to click on the “Like” & “Share/Repost” buttons at the bottom right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰
As usual-🤔💭 Consider POV & Actions of investors + 👩🏻💻👨🏻💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰
Modify on 2022-12-13 18:37
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
This is an interesting analysis of large caps vssmall caps. Important US vs Australia Difference!
Interesting to see different
Great ariticle, would you like to share it?
Great ariticle, would you like to share it?