Many Happy Returns Small caps are cheap. Why do they keep getting cheaper!?
10 snips
Oct 4, 2023 This podcast explores why small cap indices continue to get cheaper despite their attractive prices. It discusses the valuation difference between small caps and large caps, the outperformance of the S&P 600 over the Russell 2000, the challenges faced by small caps in funding costs and interest rates, the impact of profit margins and private equity on small caps, the growth limitations of large companies, and the changing importance of companies and the upper limit of company growth.
Chapters
Transcript
Episode notes
1 2 3 4 5 6 7
Introduction
00:00 • 2min
Small Caps: Cheap and Undervalued
01:52 • 7min
S&P 600 vs Russell 2000: Profitability and Quality Comparison
09:15 • 4min
Performance and Challenges of Small Caps
12:52 • 7min
Profit Margins and Private Equity in Small Caps
20:17 • 6min
The Growth Limitations of Large Companies
25:51 • 6min
Changing Importance of Companies and the Upper Limit of Company Growth
31:56 • 2min