If you have been waiting for small-cap stocks to beat the pants off their large-cap brethren because that's what they have done in the past, don't hold your breath.
John Rekenthaler in The Long Wait RR from Asset Management (Jan/Feb 1998)I divide the investing public into three distinct groups: Thrill Seekers, Guru Groupies, and Prudent Investors . . . Thrill Seekers think that money is fun. They get a visceral rush from playing the markets. They are performance-oriented risk takers who seek aggressive returns . . . What Guru Groupies really want is what Charles Givens promised them in his best-selling book, Wealth Without Risk. Remember the old saying about how everyone wants to go to heaven but nobody wants to die? These investors believe they can get to investment heaven without taking any risk . . . Thrill Seekers and Guru Groupies believe they can beat the market with the right information or the right guru. Prudent Investors believe the market can beat them.
Previously published as The Long Wait: Will Small-Company Stocks Ever Outperform? on Morningstar.net
Steve Moeller in Pick Your Clients Carefully RR from Investment Advisor (Feb 1999)
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