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ATTENTION
Wall Street Journal Readers

Your FREE LIST of No-Load Stocks

Commentary

9/2/08
Why Everyone Should Own Small Stocks

Charles Carlson, CFA
Editor, DRIP Investor Newsletter

I know a lot of investors who avoid small stocks because they are “too risky.”


The problem with avoiding small stocks, however, is that you forgo the opportunity for better returns over time.


According to Ibbotson Associates, a $1,000 investment in large-cap stocks at the end of 1925 would have grown to $3.25 million by the end of 2007.


That’s a pretty solid return — about 10.4% per year.

 

 


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