Profitable Advantages
Comounding: One of my favorite examples is the following. Microsoft trades at around $2 Trillion. There are 2 companies that trade at higher valuations currently than them. If I am an investor looking to increase my net worth, I would much rather bet on a $500 Million company, in hopes that it increases to $2 Billion. Microsoft would have to increase to $8 Trillion to achieve that same rate of return.
rule of numbers
Untapped potential
Acquisition. It is quite possible that if
exposure to smaller names, good in long run
less movign parts