According to research by Ibbotson Associates, small-cap stocks have posted annualized returns of 12.1% since 1925, while large-cap stocks have returned just 9.9% annually.
Over time, the effect on your wealth can be staggering.
Consider: If you invested $1,000 in large caps in 1925, today you would have $3.0 million. Not bad.
But if you had put that same $1,000 in small caps, you'd have $16.1 million!
It's simple in theory. But in practice, it takes good old-fashioned discipline and hard work.
That's why The Motley Fool has dedicated an entire team of analysts to helping you find the best small-cap stocks.
In 2003, Motley Fool Co-founder Tom Gardner founded Motley Fool Hidden Gems to help individual investors like you invest in underfollowed companies before Wall Street analysts caught on to them.
Now, the Motley Fool Hidden Gems team, led by small-cap experts Andy Cross and Seth Jayson, logs countless hours researching and crunching numbers before recommending a company to their Motley Fool Hidden Gems members.
And with much success -- here is a small sample of their Motley Fool Hidden Gems winners:
|AZZ||A manufacturer and seller of electrical equipment and components||+279%|
|Under Armour||A popular sports apparel company||+0%|
|Chipotle Mexican Grill||The Mexican food restaurant known for its quick, fresh burritos||+748%|
|Movado Group||A designer and maker of watches||+122%|
All returns updated daily during market hours.
It's not what you might think.
They don't chase hot stock tips. They don't rely on supercomputers or fancy algorithms. And they don't have a surefire system for timing the market (all good ways to lose money).
Instead, Andy Cross and Seth Jayson seek out well-managed companies with unbeatable products or services whose stocks are undervalued or unknown by most investors -- and offer the very best to you each month in Motley Fool Hidden Gems.
Each Motley Fool Hidden Gems issue reveals not one, but two TOP undiscovered, undervalued small-cap stocks Andy Cross and Seth Jayson believe are poised to CRUSH the S&P 500 over the next 3 to 5 years.
FREE Bonus Report No. 1: 6 Danger Signs You Can Check in 15 Minutes -- These quick and easy checks will help you sniff out "creative accounting," fictitious revenue and other ways companies can seek to deceive their stockholders. These shortcuts will help you cut through balance-sheet chicanery like a laser.
FREE Bonus Report No. 2: 3 Hot Stocks to Buy in 2017 — After exhaustive research and number crunching, Chief Investment Officer, Andy Cross, came up with with 3 companies he believes will position you to profit in 2017. This is the highly sought-after annual report could set up to make 2017 your best investing year ever.
You're just one click and mere seconds away from getting started!