For the majority of individuals in the stock market, a patient, long-term-oriented approach to investing offers rewards far beyond those of any other investment strategy. Investing regularly in a portfolio of quality companies and holding them for periods of years or decades can deliver returns that outpace those offered by equity mutual funds.
The potentially higher returns offered up by small-cap stocks means that investors who seek the highest returns from their portfolios must not exclude smaller companies from their portfolios. A healthy mix of companies of all sizes helps to reduce overall risk levels and boost returns for stock investors over the long term. In the 32 years ended in 2010, the small-cap Russell 2000 Index has posted an annualized return of 12.83%, higher than the S&P 500’s annualized return of 11.94%.
The stock analysis tools that work well for large blue-chip stocks, however, need some adjustment when focusing on smaller companies. This is where the SmallCap Informer comes in — helping subscribers to identify and find success with smaller companies.