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Showing posts from October 9, 2011

Catch Them Young

Small companies with robust financial performance could be multi-baggers of future Equities can deliver flying returns in a matter of days or investors have to wait patiently for years. They have the ability to outperform other asset classes in the medium to long term. Among the different categories of stocks, the best returns are provided by small- and mid-cap companies. Small but well managed companies can graduate to the mid-cap category and become large-cap companies. The natural progression is based on robust financial performance on continual and sustainable basis. Small companies are a must in the portfolio of investors looking to earn spectacular returns. Infosys Technologies, Cipla and Wipro started as small-cap stocks and graduated to the large-cap category over a decade. There are many such examples. More small-cap companies now have the potential to become big looking at the country's promising long-term future. An economic growth rate of over 6% is almost given in th…