It may surprise investors to hear that large capitalisation stocks have beaten small caps over all periods except the past 12 months, contrary to the conventional wisdom that small cap returns beat larger companies.
There are several factors that drive share returns. “Value” investing involves buying stocks with low prices relative to their fundamentals such as earnings while “quality” companies are those with healthy balance sheets and strong returns on capital. “Momentum” investing involves buying companies with strong performance trends.
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