Value investor Warren Buffett also falls in the inefficiency camp, claiming that individual investors should be able to earn 50% annual returns with small amounts of money because they have access to high-return small-cap stocks that he can no longer buy because of Berkshire’s huge asset size.
Facts about Small Cap Companies
1.If you want outsized returns, you must invest in small-cap value stocks.
2.All ten of the top-performing stocks of the past decade were small caps and most were value stocks. We can almost guarantee that the top-performing stocks of the next decade will be small caps as well.
3.Most small caps underperform, so the key is either finding the few small caps that will produce the 50, 60, and 70-baggers, or instead buying the entire small-cap universe to insure that you won’t miss out on the big winners.
4.Small caps have above-average volatility and can underperform for long periods, so their outsized returns may require a long timeframe to be realized.
5.Whether small caps are inherently more risky or just inefficiently priced is undecided, but investment prudence dictates that you normally limit your small cap allocation to less than half (some say 35%) of your total equity portfolio and avoid them altogether during incipient periods of severe economic distress.
Saral Gyan equity analysts give best of their efforts to identify good small cap candidates which have the potential to give exponential returns in long term. Its the result of dedication and hard work of our team that Hidden Gems outperforms small cap index by whopping 34% in terms of average yearly returns.
Below is the past performance of our past 17 Hidden Gems. All past Hidden Gems stocks recommended by our equity analysts team were backed by unbiased and authentic research reports. During last 17 months small cap index has given negative average returns of -9.2% (refer table) whereas last 17 Hidden Gems gave positive average returns of 24.7%.
5 Hidden Gems out of 17 released by our equity analysts in last 17 months are giving more than 50% returns to our Hidden Gems subscribers as on date.
Below are the two stocks which gave more than 100% returns to our Hidden Gems members.
ii) Camlin Fine Sciences (earlier known as Camlin Fine Chemicals) was recommended in March 2011 at a price of Rs. 60 has made new 52 week high couple of days back at Rs. 152. Returns of more than 150% on your investment in short span of just 8 months.
Equity analyst team at Saral Gyan do not just recommend the stocks but share authentic and unbiased research reports which help you understand the company's business along with growth opportunities and guide you to make an educated investment decision.
Click on the Download link to read /download Hidden Gems research reports:
Subscribe to Hidden Gems under Fabulous Feb offer:
This year will be year of mid and small cap stocks and we are confident that our Hidden Gems stocks will rock giving great returns to our subscribers. You can avail attractive discount of 25% by subscribing to our Hidden Gems annual subscription service.
Save 25% by subscribing to Hidden Gems at price of Rs. 3750 instead of Rs 5000. On activation of your subscription, you will also receive Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 499 absolutely Free. Hurry offer closes on 28th Feb 2012.
Click here for subscription charges and payment options.
Disclaimer: The articles published in www.saralgyan.in is for the personal information of the authorised recipient and is not for public distribution and should not be reproduced or redistributed without prior permission.
The information provided in the website is from publicly available data and other sources, which we believe, are reliable. Efforts are made to try and ensure accuracy of data however, Saral Gyan Capital Services shall not be liable for loss or damage that may arise from use of the published posts/comments in the website. The published articles are purely for information purposes and does not construe to be investment recommendation/advice or an offer or solicitation of an offer to buy/sell any securities. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice.
Investors should not solely rely on the information contained in the website and must make investment decisions based on their own investment objectives, risk profile and financial position. The recipients of this material should take their own professional advice before acting on this information.