Small Cap Stocks

[robertbanking]

Hello you wonderful and amazing individuals that make up these forums. I sincerely hope you are doing well and keeping positive.

I know that small cap stocks have the potential to grow more rapidly, as they can grow earnings more easily for instance 20% a year if done correctly. Rather than large cap stocks which are established company's these can be difficult to grow, as they have reached a peak. I kindly wondered if anyone would please be kind enough to share any small cap stocks they have in their portfolio, this would kindly help me find ideas for my portfolio and to review what may be positive about these stocks please? If anyone could kindly help me with this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you continue to have a wonderful life and everything goes well for you. Very best wishes.

 

[1nvest]

This isn't answering your question as i dont hold small cap stocks but just as an observation

Large Cap hasn't reached a peak, they've been knocking on the ceiling as it were and have now surpassed that all time high whilst small cap is still struggling to even reach its old peak
going back in history and isolating the bullish periods comparing SPX (proxy for large cap) and Russell2000 (proxy for small cap)
1990 to 2000 SPX increased by 565% compared to Russell 405%
2002 to 2007 SPX increased by 86% compared to Russell 135%
2009 to date SPX increased by 550% compared to Russell 415%
so in terms of percentage increase, large cap have considerably outperformed small cap, and have certainly not reached a peak
like i said, just an observation from history
i'm sure if we used a wider universe than the more traditional proxies, we may find more discrepancy.
Like i said, just an observation to perhaps not get too hung up on looking for higher potential growth

 

[robertbanking]

Thank you very much 1nvest you are a fabulous person, i really had overlooked this, i really appreciate your thoughts on this, i am forever grateful for your comments on this.

I had done some research and it was pointing to the fact small caps had done better as they can grow earnings more easily, however this historical data is really fascinating. In particular the data from 2009 to date SPX increased by 550% compared to Russell 415%. Can i kindly please ask, if you would be able to share a few large cap stocks in your portfolio that you strongly believe in please? This would really help me research the background and fundamentals to these company's and help me find ideas for my portfolio please. If you kindly had any thoughts on this it would be highly appreciated and it would mean the world to me.

Hope you have a wonderful evening 1nvest and you are definitely the best member on this forum. Take very good care and i hope you continue to generate more wealth for yourself. Very best wishes.

 

[SorosJoros]

Hello

***DISCLAIMER: THIS IS NOT A FINANCIAL ADVICE***

I have INGN as one of my small cap. This has an asymmetrical risk-reward. Don't take my word for it though, due your own due diligence.

Good Luck

 

[MattK]

Hello

***DISCLAIMER: THIS IS NOT A FINANCIAL ADVICE***

I have INGN as one of my small cap. This has an asymmetrical risk-reward. Don't take my word for it though, due your own due diligence.

Good Luck

Why do you think the INGN stock has an asymmetrical risk to reward ratio?

 

[MattK]

This isn't answering your question as i dont hold small cap stocks but just as an observation

Large Cap hasn't reached a peak, they've been knocking on the ceiling as it were and have now surpassed that all time high whilst small cap is still struggling to even reach its old peak
going back in history and isolating the bullish periods comparing SPX (proxy for large cap) and Russell2000 (proxy for small cap)
1990 to 2000 SPX increased by 565% compared to Russell 405%
2002 to 2007 SPX increased by 86% compared to Russell 135%
2009 to date SPX increased by 550% compared to Russell 415%
so in terms of percentage increase, large cap have considerably outperformed small cap, and have certainly not reached a peak
like i said, just an observation from history
i'm sure if we used a wider universe than the more traditional proxies, we may find more discrepancy.
Like i said, just an observation to perhaps not get too hung up on looking for higher potential growth

Also interesting in this:
Can i kindly please ask, if you would be able to share a few large cap stocks in your portfolio that you strongly believe in please?

 

[RealQuanto]

I've D-Wave Quantum Inc. (QBTS) as bullish using some long term options, but it's very volatile.

 

[Vasey]

Small-cap stocks have the ability to grow quickly due to their lower market capitalization and more room for expansion. These companies frequently engage in specialised markets or emerging industries, providing unique products or services that have tremendous development potential. Small caps, which face less market scrutiny than larger corporations, can take advantage of market inefficiencies and outperform broader market indices. Investors looking for high-growth opportunities frequently turn to small-cap stocks, which can provide significant returns over time. Small-cap investments, on the other hand, carry more risks due to their volatility and vulnerability to economic downturns, necessitating extensive study and risk management for success.