7min chapter

Many Happy Returns cover image

Small caps are cheap. Why do they keep getting cheaper!?

Many Happy Returns

CHAPTER

Small Caps: Cheap and Undervalued

This chapter discusses the valuation of small caps compared to large caps and the potential for mean reversion. It highlights the significant valuation difference between small caps and large caps, with small caps currently being very cheap. The chapter also explores the dynamics of small cap stocks in the stock market and the potential for inefficiencies and bargains.

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