Rags & Riches: The Small Cap Maze
Conventional wisdom dictates that the early stages of a corporation’s growth cycle offer substantially more compelling risk-reward profiles than advanced stage investments. But that is exactly where the reality of that proposition ends. In actual fact, the Medium and Small Capital matrix has accumulated so many unsustainable business models over the previous decade that major brokerage houses have little or no problem in persuading hundreds of thousands of investors, both institutional and retail, to keep their money in companies with a proven past.