Why Small-Cap Stocks Are a Good Investment for the Long Term

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Small-cap stocks in general have generated subpar returns in the last five years and have underperformed large-cap stocks by a wide margin over the last nine. However, Royce believes that small caps are due for a significant and lasting rebound. He says that history is the best guide to future performance, and that small caps have outperformed large caps over the long term.
Chuck Royce is a small-cap pioneer with over 50 years of experience in the investment industry. He is the chairman of Royce Investment Partners, which he founded in 1973. Royce is also a portfolio manager on four Royce mutual funds and three closed-end funds. He is best known for his flagship fund, the Royce Pennsylvania Mutual Fund, which he has managed since 1972.
In this exclusive interview, Royce discusses why his Royce Pennsylvania Mutual Fund has outperformed its benchmark for over half a century and why he believes small-caps are laying the foundation for an extended cycle of above-average returns.
#smallcapstocks #retirementplanning #investingstrategy #stocks
00:00 Hello!
00:40 Introduction
02:27 Interview with Charles Royce
23:02 One Investment
24:10 Action Point
WEALTHTRACK episode 2002 originally broadcast on July 07, 2023
More Info: wealthtrack.com/chuck-royce-s...

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1 июл 2024

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Комментарии : 27

@ryann8348 4 месяца назад

I just took a large Russell 2000 position a couple weeks ago. I'm counting on small caps rebounding over the next couple years

@spevman Год назад

Great episode, thanks!!

@martinithechobit 11 месяцев назад

Thanks for the info.

@juannunez7045 11 месяцев назад

Legend Royce funds what great insight

@charleswardrup1685 11 месяцев назад

A balance approach is always the best.

@mv6108 9 месяцев назад

What does he mean by leverage?

@1janeybug Год назад

Pennx Royce fund . 8.66 over last 15 years Vb small cap index etf 9.80 over 15 years Trails index by guess what His .96 expense ratio He beats his active on peers, but as is always loses to the index, because of basically a onepercent expense ratio versus .03

@vincentmurphy9252 11 месяцев назад

He’s right on rates at 6-7 % the good companies will thrive the junk will die

@stevenbrady440 3 месяца назад

Small cap stocks have under performed… it's amazing how artificial intelligence can quickly filter out the BS on performance claims.

@dynamicwg Год назад

Great Interview, very insightful as always! Chuck Royce is a legend and always a pleasure to hear from.

@tonynguyen36 5 месяцев назад

❤❤❤forever

@johnyjsl9219 11 месяцев назад

he said "that is the $64 question", shouldn't it be "$64,000" question ??

@airbourne2 11 месяцев назад

Yes

@repriser9876 11 месяцев назад

Large cap becomes overpriced money will flow to small cap, vice versa. 70's plastic was invented. 2000 Internet was invented. 2020's ? AI was invented? Not so fast, not yet practical except electronics become smaller. If you can find excellent companies in small cap space, of course you would make money, "better returns with higher volitivity" - his words. Remember many small companies don't exist long term, they fail and vanish. If you happen to hold a company that survives long term ( decades), it could be Google, Amazon, Apple, Nvidia today ( not in small cap category any more )

@royprovins7037 11 месяцев назад

The only reason to invest in a small cap is to hope it eventually becomes a large cap so you have to buy and not sell

@blackfiree91 Год назад

Small caps are not an asset class, they are a style weighting. If you hold a total market fund, it includes small caps. Therefore, it is included in the market and not an alternate asset class.

@apothe6 11 месяцев назад

if youre a boglehead factor investing is real and is supported by the data, buy small caps

@jmc8076 11 месяцев назад

@@apothe6 Can also buy all market index funds with more equal weighting and more sml cap. Russell 2000 better also good for this.

@jmc8076 11 месяцев назад

Some all SP or world index funds more equal weighted to sml caps vs large cap dominated.

@blackfiree91 11 месяцев назад

@@jmc8076 grammatical fail. Try again.

@dlg5485 8 месяцев назад

The small cap impact in a total market index is so small it's practically nonexistent. Total market funds are dominated by mega cap big tech names, which nearly nullifies any small cap impact in those funds. This is why you must own separate small and mid cap indexes if diversification is your goal.

@py8130 11 месяцев назад

n the past 10 years, the second 5 years did not make the small cap stocks do better than the index than the first 5 years. Also, compare with index such as QQQ or VOO, not the small cap index alone.