Investment in Smaller Companies

Many of you know that I am a strong advocate of long term investment in smaller companies, not just in the UK but also in the US, Europe and Japan. The principal reasons for my view are that small companies are dynamic, fast growing and under-researched. The latter means great companies go under the radar and are often mis-priced. Owners …

Looking Forward to 2016, Part 2

My last blog post on 11/12/15 covered some key economic themes for 2016. For the first post of the new year I want to briefly look at 2015 before expanding on the prospects for investors this year. I want to start with a question, you have a minute to think. Which were the four best performing equity sectors or markets …

Not Bad! That Bad?

Undertaking investment portfolio reviews or supplying valuation statements when equity markets have taken a pounding is not always comfortable. It came as a surprise therefore to learn that one year equity fund returns were not as bad as I had expected. Last week I reviewed a client portfolio and as part of my fund analysis report I included data on …

The Case for Smaller Companies

It is pretty well established that over the long term smaller companies outperform large and mega-cap stocks. They are typically started and managed by entrepreneurs who retain large shareholdings meaning manager and shareholders’ interests are significantly aligned. They are invariably dynamic niche businesses with strong growth potential.