“Dumbo could fly because he was a baby elephant. Adult elephants are aerodynamically unsound.” – Ralph Wanger in reference to preferring Small Cap Stocks over the Large Caps in “A Zebra in a Lion Country”
Here we are again to share some newspaper articles and blog posts we liked specifically.
1) When – How – What of Small Cap Stocks (Economic Times):
Finding the right small cap is one of the best way to wealth creation. The reasons is simple – they are usually available at 1/3rd the valuations of large caps with better to double growth rates. Also like the hugely successful small cap fund manager Ralph Wanger says – “Chances are, things have changed enough so that whatever made you a success thirty years ago doesn’t work anymore. I think that by concentrating on smaller companies, you improve your chances of catching the next wave.”
2) Investing in stocks is the best bet to beat inflation (Business Line):
A nice comparison of the returns provided Sensex, Gold Bonds and Fixed deposits and as expected, investing in stocks proves to be the best way to beat the inflation.
For over 25 years we have been working on this concept with a continuous effort towards finding a good undervalued small/mid cap stock ideas with strong fundamentals. We share about such ideas to have healthy discussions and connect to people with the similar approach.
Online links to both the above articles are – ET article & Business Line article.
3) Alice Schroeder (author of Snowball – the authorized biography of Warren Buffett) discusses Buffett’s approach towards investment
In the video Alice Schroeder takes us to a journey using a specific case study which was not discussed in the book.
Thanks to Pradeep for sharing the above video on his wonderful blog.
Do share your favorite articles through comments.