Why Small-Cap Stocks Are a Good Investment for the Long Term

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Күн бұрын

Small-cap stocks in general have generated subpar returns in the last five years and have underperformed large-cap stocks by a wide margin over the last nine. However, Royce believes that small caps are due for a significant and lasting rebound. He says that history is the best guide to future performance, and that small caps have outperformed large caps over the long term.
Chuck Royce is a small-cap pioneer with over 50 years of experience in the investment industry. He is the chairman of Royce Investment Partners, which he founded in 1973. Royce is also a portfolio manager on four Royce mutual funds and three closed-end funds. He is best known for his flagship fund, the Royce Pennsylvania Mutual Fund, which he has managed since 1972.
In this exclusive interview, Royce discusses why his Royce Pennsylvania Mutual Fund has outperformed its benchmark for over half a century and why he believes small-caps are laying the foundation for an extended cycle of above-average returns.
#smallcapstocks #retirementplanning #investingstrategy #stocks
00:00 Hello!
00:40 Introduction
02:27 Interview with Charles Royce
23:02 One Investment
24:10 Action Point
WEALTHTRACK episode 2002 originally broadcast on July 07, 2023
More Info: wealthtrack.com/chuck-royce-s...

Пікірлер: 27

@ryann8348 5 ай бұрын

I just took a large Russell 2000 position a couple weeks ago. I'm counting on small caps rebounding over the next couple years

@spevman Жыл бұрын

Great episode, thanks!!

@martinithechobit Жыл бұрын

Thanks for the info.

@vincentmurphy9252 Жыл бұрын

He’s right on rates at 6-7 % the good companies will thrive the junk will die

@charleswardrup1685 Жыл бұрын

A balance approach is always the best.

@juannunez7045 Жыл бұрын

Legend Royce funds what great insight

@1janeybug Жыл бұрын

Pennx Royce fund . 8.66 over last 15 years Vb small cap index etf 9.80 over 15 years Trails index by guess what His .96 expense ratio He beats his active on peers, but as is always loses to the index, because of basically a onepercent expense ratio versus .03

@mv6108 9 ай бұрын

What does he mean by leverage?

@stevenbrady440 3 ай бұрын

Small cap stocks have under performed… it's amazing how artificial intelligence can quickly filter out the BS on performance claims.

@tonynguyen36 5 ай бұрын

❤❤❤forever

@dynamicwg Жыл бұрын

Great Interview, very insightful as always! Chuck Royce is a legend and always a pleasure to hear from.

@johnyjsl9219 Жыл бұрын

he said "that is the $64 question", shouldn't it be "$64,000" question ??

@airbourne2 Жыл бұрын

Yes

@repriser9876 Жыл бұрын

Large cap becomes overpriced money will flow to small cap, vice versa. 70's plastic was invented. 2000 Internet was invented. 2020's ? AI was invented? Not so fast, not yet practical except electronics become smaller. If you can find excellent companies in small cap space, of course you would make money, "better returns with higher volitivity" - his words. Remember many small companies don't exist long term, they fail and vanish. If you happen to hold a company that survives long term ( decades), it could be Google, Amazon, Apple, Nvidia today ( not in small cap category any more )

@royprovins7037 Жыл бұрын

The only reason to invest in a small cap is to hope it eventually becomes a large cap so you have to buy and not sell

@blackfiree91 Жыл бұрын

Small caps are not an asset class, they are a style weighting. If you hold a total market fund, it includes small caps. Therefore, it is included in the market and not an alternate asset class.

@apothe6 Жыл бұрын

if youre a boglehead factor investing is real and is supported by the data, buy small caps

@jmc8076 11 ай бұрын

@@apothe6 Can also buy all market index funds with more equal weighting and more sml cap. Russell 2000 better also good for this.

@jmc8076 11 ай бұрын

Some all SP or world index funds more equal weighted to sml caps vs large cap dominated.

@blackfiree91 11 ай бұрын

@@jmc8076 grammatical fail. Try again.

@dlg5485 9 ай бұрын

The small cap impact in a total market index is so small it's practically nonexistent. Total market funds are dominated by mega cap big tech names, which nearly nullifies any small cap impact in those funds. This is why you must own separate small and mid cap indexes if diversification is your goal.

@py8130 Жыл бұрын

n the past 10 years, the second 5 years did not make the small cap stocks do better than the index than the first 5 years. Also, compare with index such as QQQ or VOO, not the small cap index alone.