2d ago in General discussion
Small Cap Value...my favorite type of investment
Small stocks outperform big stocks (over a long period of time).
Value stocks outperform growth stocks (over a long period of time).
So with 'Small Value' stocks...you can likely expect an even higher return.
It's the triple cheeseburger of stocks, without the heart attack. 馃槄
Take a look at the differences when investing in the S&P 500 (often referred to as "the market.") vs the Small Cap Value (SCV) asset class from the past ~100 years.
Absolutely NO guarantee of what future returns look like, but for patient, LONG-TERM investors...this is an asset class I love to highlight.
S&P 500 has done VERY well the last 15 years.
Small Cap Value has not.
It's not intuitive, but generally, things 'revert back the averages...aka the norms."
Small Cap Value hasn't done well recently, but historically, it has. Sometimes you have to be VERY patient to be rewarded.
Look at the time periods in the charts. Notice that SCV can be dormant for a long period of time (20 yrs), but we ALL have very long investing life spans. It's not JUST about investing from age 22-65...from 65 to 95 (or whenever we die), you still are invested. SCV should be at least a portion of nearly anyone's portfolio, particularly if they can stomach the long periods of drought.
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Small Cap Value...my favorite type of investment
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