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Smallcaps: Don’t be afraid of the narrative about them, but be sure to check the tipping points: 5 stocks from different sectors for long-term investors

Posted on by darion

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Shortly after the election results, the chatter on the streets was, and probably still is, that small-caps weren’t going to have the performance they’ve had over the last two years. Can anyone object to a broad statement? Probably not. However, expecting small cap growth all the time is also inappropriate. There are over 2,000 small cap stocks, few of which are actually worth your attention, and even fewer are worth having in your portfolio. If you manage to acquire the right to shares of small capitalization companies, then the profits will be extremely high, but at the same time there is always a risk of making a mistake and capital erosion. At a time when our phases of volatility cannot be ruled out, investors looking for small-cap stocks must follow certain rules to avoid making the wrong decisions of hasty buying or panic selling.

When investing in stock markets, it is extremely important to distinguish between high-quality and low-quality companies in the case of small, mid- and large-cap companies, as well as the difference between the intrinsic value of a stock and the overall value of the company. Some niche small businesses can continue to generate significant profits over time if maintained long enough. On the other hand, if someone has this approach to small-cap investing

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