facebookAnyone has insights on microcaps vs large caps? - Seedly

Daryl Liao, Fti

10 Dec 2019

Stocks

Anyone has insights on microcaps vs large caps?

Pros and cons? which is better? any recommendations from first-hand experience?

Discussion (6)

What are your thoughts?

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Microcaps, generally needs more due dilligence on research as they can be wiped out due to competition.

But they have higher growth earnings potential. So if a microcap has a market cap of 50mil, for it to 10x, it only needs to grow to a 1/2 billion dollar company.

But if you talk about large caps like FB, FB's market cap is about 500mil, to 10x, it needs to be a 5 trillion dollar company!

I prefer microcaps because every large cap out there started with micros. It is the best way to compound your money when you manage to find a high quality microcap, sit tight on it and let the management execute it for you. Of cuz a lot more due deligence and in-depth understanding you must have in the company because most of the microcaps doesn't last long.

Saying so, i don't completely ignores large caps. Example Facebook, despite how large it is, it still can grow 20%+ YoY. Some of the large caps are definitely worth to look at.

Microcaps tend to be volatile and most of the time their price movement is due to manipulation by a ...

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