Selecting Micro-Cap Companies With Potential

Micro-Cap Stocks with Potential

Micro-cap investing and growth investing are considered synonymous in the sense that investors turn to micro-cap stocks because small companies are considered to have greater growth potential. Yogesh Supekar explains the various ways to identify micro-caps with potential 

Whenever the broader markets rally, we find that the investor portfolio tends to outperform the key benchmark index. It is because investors usually include several stocks from the broader markets in the portfolio. The lure for micro-cap investing and Small-Cap investing is the high growth potential in the stock prices when compared to the Large-Caps and Mid-Caps. However, we know by now that the market is not all about returns but it is almost always about the risk and return trade-off.