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94 Don’t Make Me Say I Told You So

Large-Cap Stock Benefits:

► Large, stable companies

► Much more likely to pay dividends than mid-cap or
small-cap stocks

► Large number of shares outstanding, which makes these
stocks more liquid and easier to sell

► Somewhat consistent and predictable earnings and

revenue

► Normally less volatile prices than mid- or small-caps

► Easy to get information on the companies

Mid-Cap Stock Benefits:

► Historically outperform small-cap stocks when the
economy goes into a recession, and have led large-cap

stocks when the recession is over

► Have provided risk-adjusted returns that are superior to

both large-cap and small-cap stocks

► Mid-cap companies are often small companies that have
succeeded

Chapter 3: You Must Have Growth In Your Portfolio