Magazine
Latest Issue

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…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to letters@prospect-magazine.co.uk

More From Prospect