‘The last few years have favoured the big over the nimble’. So said editor John Addis in Buys: The next generation on 17 Mar 14. The facts confirm it: The 200 smallest stocks in the S&P/ASX 300 index have underperformed the 100 largest stocks by 46% over the past three years.
It’s why Intelligent Investor Share Advisor is now casting its stock-catcher’s net a little wider. Rotating a small proportion of your investment capital out of expensive big companies into smaller and cheaper ones makes sense.