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The conventional wisdom among most investors is that owning shares in big companies is less risky than investing in small ones. It seems obvious. Big companies are often well-established, have leading positions in their markets and are financially robust enough to withstand the ups and downs of the business cycle. Small companies tend to be less financially robust, depend on fewer customers and are forced to compete with bigger rivals for market share. Big should equal steady but unspectacular progress, and small should equal more risk but the potential for greater reward if the company can keep growing.

My uncritical…

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