The Little Company Phenomena Investing And Getting Big Returns
Now that we know why stocks provide superior returns compared to other investments, let's take a look at a strategy of finding stocks with the best profit potential. My research of stock performance information shows that the size of a company is the most reliable forecaster of future investment returns . Typically little corporations have higher investment returns than substantial companies. The link between company size and future investment returns covers the entire size range and isn't limited to the tiniest stocks.
Historical return info shows that average investment returns increase as one moves from the biggest corporations to the tiniest. This relationship means that past annual returns are of value in predicting future yearly returns. Tiny and micro cap stocks have constantly provided higher investment returns than mid and large cap stocks during the last 70-Years and based mostly on historical correlations should continue doing so in the future.
The table that follows depicts investment returns relative to the size of a company over the last 70-Years. This table obviously demonstrates the inverse relationship between the size of a company and investment return. The largest corporations produced the lowest returns and the tiniest companies produced the highest returns. A $1,000 investment in mega cap stocks grew to $1.5 million; large caps $3.5 million, mid caps 4.7 million, small caps $5.8 million and micro caps $11.4 million.
The Best Profit Opportunity of Your Lifetime!
My experience investing in micro cap stocks over the past 17 years and my data research has led straight to the discovery of the gigantic profit opportunity available from investing in micro cap stocks. My research exposes micro cap stocks supply the best investment returns matched against all other types of investments.
The table below compares the expansion of a $1,000 investment for varied investments during the last 70 years. This table significantly reveals that micro cap stocks out perform all other investments by a wide margin. A $1,000 investment in micro cap stocks grew to a fantastic 11.4 million bucks.
Over the same period the expansion of a $1,000 investment in Treasury Bills, gold, Treasury Notes, corporate bonds and home prices ranged from $16,817 to $63,131 and was unimportant compared to the returns for stocks. A $1,000 investment in the S&P 500 Index grew to $1,287,957 demonstrating that stocks and particularly micro cap stocks supply the best profit openings to be had today.
The graph that follows pictures the growth of a $1,000 investment during the last 70 years for micro cap stocks, S&P 500 Index, home costs, corporate bonds, Treasury Notes, gold and Treasury Bills.
