You may have heard of micro-cap, small-cap, mid-cap, large-cap, and mega-cap before. No, it doesn’t refer to sizes of cappuccinos! It refers to the market capitalisation of companies. Many investors choose to specialise in investing in companies of a particular market capitalisation, because companies can have different attributes depending on where they are in their growth cycle. Generally speaking, a micro-cap company would be very early on in its growth cycle, compared to a mega-cap. We’ve had a lot of interest from listeners wanting to know more about small-cap stocks, so that’s why this episode we sit down with Henry Jennings.
Henry has spent a lifetime in stockbroking and investment banking. Originally from the UK, Henry has been a divisional director for Macquarie Bank responsible for equity trading and has been both a trader and a broker during his career. Currently, Henry is a Senior Investment Analyst and Portfolio Manager at Marcus Today. Henry specialises in small and mid-caps although he has a thorough knowledge and understanding of large caps too.
As millennial investors, we have time on our side, and small/mid-cap stocks offer us great capital growth potential. This is a good conversation about how millennials can harness the power of time, and incorporate small- and mid-cap stocks into our investing strategy.
In this episode you will learn:
- The definition of small cap stocks
- The major differences between small and large caps
- How you can get exposure to small-cap investing
- What to look for in a small cap
- About the power of a narrative
- What is on Henry’s watchlist at the moment
- Henry’s thoughts on some of our listener’s small-cap picks
Stocks and resources discussed:
- Marcus Today
- Afterpay (ASX: APT)
- Tinybeans Group Ltd (ASX: TNY)
- Raiz Invest Limited (ASX: RZI)
- Hylea Metals Limited (ASX: HCO)
How to Get Involved in Equity Mates: