RE­MEM­BER THE BIG ONES

Finweek English Edition - - INVESTMENT -

Far too of­ten the small in­vestor rushes off to high­est risk small-cap stocks hop­ing for a grand re­turn in dou­ble-quick time and sure, the small stocks can pay hand­somely, but they can also burn and the re­al­ity is that there’s a lot more burn­ing go­ing on. Ig­nored in this rush to quick wealth are the large-cap stocks, which can equally de­liver splen­did re­turns and are highly un­likely to dis­solve into a pile of debt and bank­ruptcy. Year to date in the stocks with a mar­ket cap of over R10bn (large caps) there are 12 stocks that have re­turned over 50%, ex­clud­ing div­i­dends, this is mon­ster wealth cre­ation with­out the risks in­cluded in the smaller stocks. Simon says never ig­nore large cap stocks – af­ter all this is how War­ren Buf­fett got rich.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.