The Modern Investor
Written by Human Advisors, for Human Investors
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Author
Category
- Annual Letters 1
- Bonds 8
- Business Owners 2
- Cash Management 6
- Economy 7
- Education Planning 3
- Executive Compensation 1
- Financial Planning 8
- Forecasting 6
- Housing 2
- Interest Rates 1
- Investing 38
- Legacy Planning 1
- Market Data 7
- Quarterly Commentary 4
- Retirement Plans & Planning 15
- Risk Management 1
- Stocks 19
- Tax Planning 14
Small Companies. Small Returns?
Traditional theory suggests investors should earn higher returns in riskier investments, like small caps. However, small cap stocks have underperformed large caps for more than a decade. And they have even underperformed bigger, more stable stocks since the late 1970s. Which begs the question: why own smaller, riskier companies if we aren’t earning higher returns?