Small Cap Stocks vs Large Cap Stocks - Which are Better Investments

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  • Опубліковано 25 вер 2024
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    In this video we analyze small-cap stocks, mid-cap stocks and large-cap stocks to see which perform the best.
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КОМЕНТАРІ • 73

  • @dkallj4050
    @dkallj4050 4 роки тому +23

    After getting burned a few times on picking the WRONG small cap companies, I think I'll stick with the more stable, big companies. Small cap companies (not all) more often than not are small cap for a reason. Maybe they don't have good financials, or maybe they don't get enough information available to the public. Don't get me wrong, you can definitely pick the right one and score a home run but expect far more volatility than a large cap stock.

    • @alexanderpike1936
      @alexanderpike1936 4 роки тому +3

      Dkall J this is why I stick with ETFs for small caps, specifically SMDV

    • @mutton_man
      @mutton_man 4 роки тому

      I too have been burned by a small cap stock. Admittedly I knew very little about stocks back then.

  • @DoubleOddJosh
    @DoubleOddJosh 4 роки тому +37

    I have a neighbor who used to be a stock broker and he gave me this advice: a stock portfolio should look like a pyramid, with the smallest cap (highest risk) should be at the top with the least amount invested in them, with the mid-cap companies in the middle, and large-cap companies at the bottom making up the foundation with the most amount of $ invested into them

    • @yudistiraliem135
      @yudistiraliem135 4 роки тому +6

      Double Odd Josh does that mean your neighbor is advising you to invest in pyramid scheme?

    • @DoubleOddJosh
      @DoubleOddJosh 4 роки тому +5

      @@yudistiraliem135
      Nice try, but no. He's trying to encourage me to think of investing as a metaphor. Simply put: invest most of my money into stable companies while investing the least amount into highly risky ones. Did that clarify?

    • @sergioescalona62
      @sergioescalona62 4 роки тому

      Excellent Video! Sorry for chiming in, I would love your initial thoughts. Have you ever tried - Rozardner Mind Tricks Reality (Have a quick look on google cant remember the place now)? It is a great exclusive guide for revealing the trick to get the mind of a millionaire without the headache. Ive heard some extraordinary things about it and my mate at last got great results with it.

    • @shivangverma7472
      @shivangverma7472 3 роки тому

      @@yudistiraliem135 yes but where did you learn that i follow josh utoshaniya ☺️

  • @KevinConwayChannel
    @KevinConwayChannel 4 роки тому +9

    God I love these videos. It's like I have a question in my head and then a Learn to Invest video pops up about it... :)

  • @zeppeinvest-stockmarketvid1441
    @zeppeinvest-stockmarketvid1441 4 роки тому +34

    Personally I only own Large cap companys. Feeling comfy with the big boys. Thanks for sharing your insights Jimmy!

    • @craigadair128
      @craigadair128 4 роки тому +4

      I only buy large cap stocks they seem to perform better and typically pay larger dividends

    • @craigadair128
      @craigadair128 4 роки тому +9

      Though pretty much anything is better than earning 1% on a CD in the bank at this point

    • @JoseLopez-sw8ke
      @JoseLopez-sw8ke 4 роки тому

      Can somebody teach me how to invest and make money from large cap companies?

    • @Anthony-zw1qb
      @Anthony-zw1qb Рік тому

      I like LG cap too. It’s great for long term as many of us are saving for

  • @bluesky5587
    @bluesky5587 4 роки тому +3

    First and old time over 65 and a dgi investor ... thank u jimmy

  • @cstewart7056
    @cstewart7056 4 роки тому +4

    This analysis really shows some second-tier thinking on analyzing the inner winners in each category. Not sure I would have thought to do that.

    • @LearntoInvest
      @LearntoInvest  4 роки тому +3

      That sounds like a great follow up video idea. I'll see if I can focus on what characteristics the top winners all shared 👍

  • @jagulba
    @jagulba 4 роки тому +2

    You are awesome, I asked on "Top 6 Defensive Dividend Stocks" video that you talk about small cap.... you listen to your viewer . Glad to found you on UA-cam

  • @mindsinmotion2825
    @mindsinmotion2825 4 роки тому +9

    There is so much to learn about investing. Blue chips, growth, sectors, small cap,large cap 😦

    • @hectormiguel05
      @hectormiguel05 4 роки тому +3

      The more you do it the easier it gets. Once you have an investing strategy, and a routine when analyzing companies you should be good.

    • @mindsinmotion2825
      @mindsinmotion2825 4 роки тому +1

      @@hectormiguel05 consistency

  • @GenExDividendInvestor
    @GenExDividendInvestor 4 роки тому +9

    I like safe large cap dividend companies :)

  • @sungkeum1286
    @sungkeum1286 4 роки тому +5

    great content as always. Thanks Jimmy.

  • @authorcraigcothren
    @authorcraigcothren 2 роки тому +1

    Your analsis confuses me because the Vanguard etf VB does not perform as well as VO mid cap and both of these underperform Vanguards SP500 etf VOO for every year since YTD November 2021 .

  • @char7423
    @char7423 4 роки тому +2

    Superb analysis! Jimmy, please make a video of top 10 (or 20) large cap, and a separate video of top 10 (or 20) mid cap companies that looks fundamentally good to invest coming year 2020 forward. thank you and happy holidays!

  • @dantesmith4384
    @dantesmith4384 4 роки тому +2

    Can we see a video of dividend video of aristocrats from different countries/indexes?

  • @phillipdukes8319
    @phillipdukes8319 4 роки тому +2

    Excellent Analysis! Well explained! Could you make a video like this comparing Growth vs. Value?

  • @jamesrobertjackson
    @jamesrobertjackson 4 роки тому +2

    I have been keeping an eye on Aritzia. It's a Canadian company. It's on the otc market. It reminds me of Lulu, in regards to its popularity. I am up over 2000% on lulu.

  • @Bhomasolini
    @Bhomasolini 4 роки тому +2

    good video.
    but large caps only performed better the last 10 years. It looks different in some other decades. I think because of that it can make sense to go for small cap rn.

  • @georgehadley7863
    @georgehadley7863 4 роки тому +3

    Jimmy - Great video(as usual). Is there any way of identifying those small cap companies that perform so well?

    • @wread1982
      @wread1982 3 роки тому

      Just go with IJR, VB or VIOO if you wan to outperform the S&P 500 over the long run

  • @alexanderpike1936
    @alexanderpike1936 4 роки тому +3

    Hey Jimmy, great video (as always), what are your thoughts on small/mid cap dividend ETFs? (SMDV/REGL, for example)

  • @rmfinance1781
    @rmfinance1781 3 роки тому +1

    Why not do both with the index funds (small and large cap)?

    • @wread1982
      @wread1982 3 роки тому +1

      I do all three small, mid and large cap. That way you can sell shares of which ever is the highest first in retirement

  • @basseleid6768
    @basseleid6768 4 роки тому +2

    Great video. It would be interesting to add to the charts the s&p averages and the whole market averages.

  • @11Alisher
    @11Alisher 4 роки тому +2

    Thanks for this, but I personally try invested in companies in large cap and pay solid dividend that proven over the years

  • @davidhazen2394
    @davidhazen2394 Рік тому

    Question. I notice when a company does an offering that the public float is not updated instantly. Does anyone know a stock board or service that instantly updates public float and market cap after an offering has just been completed?

  • @bradramm6239
    @bradramm6239 4 роки тому +3

    Thanks Jimmy! Time to do some research into small caps.

    • @LearntoInvest
      @LearntoInvest  4 роки тому +2

      Let me know if you find anything good. I'm gonna try to build a watch list of small caps stocks

    • @rouzbehmehr4244
      @rouzbehmehr4244 4 роки тому

      @@LearntoInvest Check Xebec. Renewable natural gas investments are going up and so too the XBC !!

  • @nsan48
    @nsan48 4 роки тому +1

    My holding doubled this year with LAD, small cap company with terrific numbers and highly undervalued after last year's selloff. And another holding, a mid cap, almost doubled too (KLAC). It's great to have some of those in your portfolio as long as the numbers are great and the valuation is attractive.

  • @mddij
    @mddij 4 роки тому +4

    Nice insight over the small caps, following the rich dad approach. Since I am looking for dividends I was wondering if small cap stocks are less likely to give dividend because they are more looking to grow and invest their profit into the company instead of giving dividend.

    • @LearntoInvest
      @LearntoInvest  4 роки тому +3

      Yea they are less likely to pay dividends. Generally the larger more established companies pay the best dividends

    • @inviz1769
      @inviz1769 2 роки тому +1

      Small cap value pays dividends

    • @rytalinmane
      @rytalinmane 2 роки тому +1

      From what i heard they pay more dividends to compensate for higher risk

  • @imademas3347
    @imademas3347 4 роки тому +2

    This really helps. Thanks Jimmy!

  • @GregK235
    @GregK235 4 роки тому +1

    Overall, the funds have similar performance. How to identify those companies with the best performance each year? I wonder if you would find similar behavior for the worst performers at each capitalization? It seems that dispersion increases as capitalization decreases.

  • @Witnessmoo
    @Witnessmoo 4 роки тому +2

    Only like 1 in 5 small caps do well... so best to leave them alone unless you are extremely well informed about a company and can beat the odds.

    • @jordanroig6626
      @jordanroig6626 4 роки тому +3

      Rexy The Hound small cap index funds such as the s&p 600 have outperformed the s&p 500 over the past 90 years

  • @FranciscoRodriguez-cm1yx
    @FranciscoRodriguez-cm1yx 2 роки тому

    Jimmy, your video is great. I liked how you mentioned how a small cap stock can become a multi bagger. Across all three categories, the tech and health sectors are high performing. But, ticker NKTR is now low priced.

  • @Daniel-fi9nb
    @Daniel-fi9nb 4 роки тому

    I love your explanations! Keep it up!

  • @navadiaev
    @navadiaev 4 роки тому

    Thanks for the quality content Jim.
    Liked and subscribed!

  • @beagoodperson7986
    @beagoodperson7986 4 роки тому +2

    Large Cap Growth Fund the best.

  • @0ne_of_Billion
    @0ne_of_Billion 4 роки тому +2

    Great video

  • @Anthony-zw1qb
    @Anthony-zw1qb Рік тому

    I like large cap for long term

  • @Vevenwood
    @Vevenwood 7 місяців тому

    This view came from that book rich dad

  • @seanm7553
    @seanm7553 3 роки тому

    Maintenance fees?

  • @vaclavpokorny2115
    @vaclavpokorny2115 3 роки тому +1

    Too small sample size, if you strach it to lets say 50 and more years, then small stock will win, how so many studies sugest.

  • @tantani6078
    @tantani6078 4 роки тому +1

    Learn to invest
    Can you pls make a video about good dividends investment in Europe?
    prudential inc seems like a good option but I don’t want more options and I don’t seem to find anything good
    (I have a large amount of euros that are collecting dust, so I want to make them work) (my dollars and NIS are working for me full time lol)

  • @jimd1617
    @jimd1617 Місяць тому

    thank you 🤝

  • @mikeuk66
    @mikeuk66 3 роки тому +1

    Little did he know that 2 months later the biggest market crash of all time would occur.

  • @justry_right9766
    @justry_right9766 4 роки тому

    Why does small caps that have a little resources have more potentional growth?

    • @LearntoInvest
      @LearntoInvest  4 роки тому +1

      I think the simplest answer is it's usually easier to, let's say double, a 100 million dollar company than it is to double a 100 billion dollar company.

  • @keithclark8030
    @keithclark8030 3 роки тому

    Great video. I have been learning charts off and on for the past 15-years. However, I just starting trading a couple months ago (Swing trading of 2 -4 weeks, not Day. Just don't have a skill for Day trading). Right now, I'm just trading with Large-Cap as I work on my strategy. Eventually, I may go to Mid or maybe Small Cap for better returns, but I believe I can do well enough with Large Caps. Thanks for the video.

  • @anonymousperson263
    @anonymousperson263 4 роки тому +1

    Thats just the top 10... now show us the bottom 10 please. Low cap stocks also lose more than mid cap and large cap stocks. TL;DR they all average about the same but their variations are different.

  • @TruthDefender
    @TruthDefender 3 роки тому

    great video

  • @PROJECT.LUKE.ONE.75
    @PROJECT.LUKE.ONE.75 3 роки тому

    TPLC / TPSC (:

  • @rhythmandacoustics
    @rhythmandacoustics 4 роки тому

    Angel investors make so much of their wealth on small caps funding.

  • @MrLegantWong
    @MrLegantWong 3 роки тому

    😊

  • @polievets1
    @polievets1 3 роки тому +1

    Just buy small cup Vanguard ETF and be done with that Do you think you know better than company which run 5 trillion under management? Yeah ? Good luck 🤣