Mitigate Risk by Buying Small-Caps in Bunches

Jul. 19, 2022 | RedChip Companies

Microcaps are the most volatile asset class. Best to buy smaller-caps in bunches. The proverbial “Don’t put all your eggs in one basket,” is a cardinal principle when investing in speculative stocks. Even the most promising, well-researched companies sometimes throw investors curve balls, causing stocks to retrace gains and putting a stay on big returns for years. With a basket of smaller stocks, you mitigate risk, balancing your portfolio with stocks that may be in an upward trajectory while others may be flat.

"I work with many of the companies that would be RedChip companies. And we certainly ascribe to the same view that the RedChip Companies do, which is Discovering Tomorrow's Blue Chips Today."

  • Bob McCooey, Senior Vice President, NASDAQ Stock Market