Published on 29 Dec 2023 on Insider Monkey via Yahoo Finance
16 Most Profitable Small-Cap Stocks Now
In this piece, we will take a look at the 16 most profitable small-cap stocks now. If you want to skip our overview of small cap companies, stocks, and investing, then you can skip ahead to 5 Most Profitable Small-Cap Stocks Now.
Small cap stocks and companies are among the fastest growing sectors of the stock market. Investing, when we look at the best performing returns, is often about buying low and then holding for years. Some of the biggest companies in the world today, namely the big technology mega cap stocks, were once small cap companies too. Investors or employees who were lucky or smart enough to have gained control of their equity back then have become some of the richest people in the world over the course of just a couple of decades.
Yet, just as it the case with every other investment vehicle, small cap stocks also come with their associated risks. Before firms become big, they are vulnerable to the same risks as every other company. Some of these risks include the inability to remain profitable to either invest in future growth or see market share loss accelerate and make accountants and financial planners unable to fund existing operations. For instance, the world's biggest technology company in terms of market value is the Cupertino, California consumer electronics giant Apple Inc. (NASDAQ:AAPL). Apple's latest market value is a whopping $3 trillion, and since 1998, the shares have gained quite a bit in terms of percentage returns. Apple's shares were trading at $27 in May 1998, and since then, the stock has undergone four separate splits. Whether we account for these or not, the end result is a multi hundred thousand percent return for a stock that even Warren Buffett most likely wishes that he had bought earlier.