Invest in small to mid-sized companies
History has proven that small-capitalization companies often outperform the large-capitalization companies in both the national and international markets.
Most investors think that smaller companies carry a higher risk because they are less established and they are riskier loan candidates as well. However, historically speaking, an investment portfolio that favors small-to-midsize companies has nearly always provided high returns than a portfolio with large-cap stocks.
From 1926 to 2010, small American companies outperformed the large American companies in terms of equity return by an average return of 2% every year.
