Good things come in small packages.
With most investment news in Australia focussing on the biggest companies on the ASX – familiar names like BHP, Telstra and Coles – it can be easy to forget there are hundreds, even thousands of smaller companies on our local list as well.
And yet, these smaller businesses can offer big opportunities: historically, small and micro-cap shares have been some of the most powerful profit-generators for savvy investors. In fact, many of the ASX's best-performing shares over the last decade were companies of this size, with annualised returns of 40%+ listed by more than a handful!
But it's not for nothing that these smaller companies are often bypassed by investors, including many mutual funds and superannuation providers. Small-caps have a number of unique risks to go with their advantages, and these need to be carefully managed by investors.
In order to help members navigate these choppy-yet-potentially-profitable waters, we recently sat down with Ed Vesely, Investment Advisor and local small-cap specialist, to record a short video. In it, Ed gives his take on everything small-cap: what it's all about, some of the risks and benefits, and some thoughts on how to approach this style of investing.
As of 11th July, 2023. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. The Motley Fool has a disclosure policy. For details on holdings by The Motley Fool Australia's parent company Motley Fool Holdings Inc please click here. For details on holdings by Motley Fool Australia please click here. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Any and all advice contained in the above content is general advice that has not taken into account your personal circumstances. Before you act on the general advice we provide, please consider whether it is appropriate for your personal or individual circumstances. Please refer to our Financial Services Guide for more information or email Member Support to request a copy.
