The discipline of investing in small caps
Smaller companies tend to have simple business models that have not been complicated by frequent acquisitions and disposals
[SINGAPORE] There could come a time in our investment journey when we may think we need something a bit more exciting than just a bunch of blue-chip shares. I am at that stage.
Don’t get me wrong. There is absolutely nothing wrong with large-cap stocks. They have an important role to play in any portfolio.
With a judicious selection of large caps, we can even leave them to do what they need to do over the long term. One of the worst things that we can ever do is to tinker with them too much. But continually reinvesting any dividends that we receive is a must. It is the cornerstone of compounding.
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