The Tiny Company Phenomena Investing and getting big returns ...

Now that we all know why stocks provide superior returns compared to other investments, let's take a look at a technique of finding stocks with the best profit potential. My research of stock performance information shows that the size of a company is the most trustworthy forecaster of future investment returns . On average , tiny corporations have higher investment returns than substantial companies. The relationship between company size and future investment returns covers the whole size range and isn't restricted to the smallest stocks.

Historic return info shows that average investment returns increase as one moves from the largest corporations to the smallest. This link implies that past annual returns have value in forecasting future annual returns. Little and micro cap stocks have ceaselessly provided higher investment returns than middle and giant cap stocks over the last 70-Years and based primarily on historical correlations should continue to do so in the future.

The table that follows shows investment returns relative to the dimensions of a company over the past 70-Years. This table clearly demonstrates the inverse relationship between the dimensions of a company and investment return. The biggest firms produced the lowest returns and the tiniest companies produced the highest returns. A $1,000 investment in mega cap stocks grew to $1.5 million; large caps $3.5 million, mid caps 4.7 million, little caps $5.8 million and micro caps $11.4 million.

The Best Profit Opportunity of Your Lifetime!

My experience investing in micro cap stocks over the past 17 years and my information research has led straight to the discovery of the vast profit opportunity available from investing in micro cap stocks. My research explains micro cap stocks provide the best investment returns compared with all other types of investments.

The table below compares the growth of a $1,000 investment for various investments over the last 70 years. This table significantly reveals that micro cap stocks out perform all of the other investments by a wide margin. A $1,000 investment in micro cap stocks grew to an incredible 11.4 million dollars.

Over the same period the growth of a $1,000 investment in Treasury Bills, gold, Treasury Notes, corporate bonds and home costs ranged from $16,817 to $63,131 and was insignificant compared against the returns for stocks. A $1,000 investment in the S&P 500 Index grew to $1,287,957 demonstrating that stocks and particularly micro cap stocks supply the best profit opportunities to be had today.

The graph that follows shows the growth of a $1,000 investment over the past 70 years for micro cap stocks, S&P 500 Index, home costs, corporate bonds, Treasury Notes, gold and Treasury Bills.

Chuck Hughes Investing and Returns

Source: http://ifinancedaily.com/the-tiny-company-phenomena-investing-and-getting-big-returns/

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