Deciding based on market cap
It is just as important to consider, when analysing stock investments, the relative size of a listed company or trust, says GEOFF HOWIE
WHETHER we are looking to buy a house, a car or a new set of clothes, a product's relative measurements such as weight, length and capacity can be just as important to our purchasing decisions as the price tag or brand name.
A brand new Harley-Davidson, for example, is not of much practical use to a family of five as a means of transport, even if it is going for a good price. Getting the right size is important not only for our own purposes but also when we think about resale potential.
It might not be too different with stock investment decisions.
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