Investing Tip #107: Invest in Small Companies Selectively

 Some of the smaller companies have the potential to turn into the large blue chips of tomorrow.

The small-caps have had greater returns than large-caps. For example small-cap stocks in the U.S. returned an average of 12 % compared to 11% returned by the Standard & Poor’s 500 Index (S&P 500).

But you should still invest in small companies selectively.

If you want to learn more check out these resources:

  • The Bull Market is Still Ahead for Many Promising Small Caps
  • 7 Investing Ideas You Haven’t Considered

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