Summary of Invertir en Small-Caps: Todo lo que tienes que saber 📈

Main Financial Strategies and Market Analyses:

Definition of Small-Caps: Small-cap companies are defined as those with a Market Value between $300 million and $2 billion.
Market Distribution: Approximately 42% of publicly listed companies in the U.S. are small caps, but they represent only 2% of the total Market Value.
Historical Performance: Small-cap and mid-cap stocks have historically outperformed large-cap stocks over the past 35 years, although this trend can vary in shorter time frames.
Volatility and Risk: Small-cap stocks are generally more volatile and riskier than larger companies, with about 41% of small-cap companies being unprofitable.
Investment Opportunities: Small caps may offer undiscovered opportunities as large investment funds typically focus on larger companies, leaving smaller firms less analyzed.
Interest Rates Impact: Rising interest rates disproportionately affect small companies, which often rely more on debt compared to larger firms with substantial cash reserves.
Diversification Considerations: Small caps may not provide good diversification benefits since they often behave similarly to mid and large-cap stocks.
Expert Recommendations: Financial advisors suggest a balanced approach to small-cap investments, typically allocating a small percentage of a portfolio (around 1.2% for aggressive profiles).

Balanced Approach: Consider small caps as part of a diversified portfolio rather than a speculative venture.
Use of ETFs: Recommended ETFs for investing in small caps include those that track the Russell 2000 index or other small-cap indices.
Screening for Investments: Utilize stock screeners to filter small-cap stocks based on criteria such as market cap, P/E ratio, and return on invested capital.
Long-Term Perspective: Maintain a long-term investment horizon rather than attempting to time the market based on short-term fluctuations.

The video features a presenter named Juan David, who provides insights and analysis on small-cap investing based on historical data and expert recommendations.

— 06:22 — « The smaller the company, the riskier its stock is. »

— 22:44 — « The numbers can deceive you; it is important to understand the business. »

— 24:21 — « Many companies are going from startup to large cap and they are never here. »

— 43:32 — « The results speak for themselves; a good manager generates good results. »

— 43:50 — « The most important thing is what the ETF is made up of. »