Motley Fool Money The Small Cap Show
Mar 2, 2024
Bill Mann, Lead Analyst at the Motley Fool and Director of Small-Cap Research, dives into the thrills of small-cap investing. He discusses whether the disappearance of the 'small-cap premium' impacts investors positively. Mann also explores the communication challenges faced by small-cap companies like Boston Omaha, stressing the need for transparency. He highlights strategies for navigating the small-cap landscape, especially amid evolving market trends, using real examples like Fiverr and Grupo Aeroportario del Sureste.
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Small-Cap Underperformance
- Small-cap stocks have underperformed larger-cap stocks over the past five years.
- This is partly because the largest companies, which have seen significant gains, aren't included in small-cap indices like the Russell 2000.
Institutional Blind Spot
- Institutional investors often overlook small-cap companies due to their size and limited trading volume.
- This lack of attention can create opportunities for individual investors.
Small-Cap Investing Mindset
- Prepare for volatility and limited information when investing in small caps.
- Focus on understanding specific sectors or trends to gain an advantage.