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My shocking realization about the best performing stocks

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March 26, 2010 – Comments (2) | RELATED TICKERS: GMCR , MNST , XTO

So I like to do a lot of historical research on stocks. Some of it can be a complete time suck, but I find some of it can be pretty interesting, if not enlightening.

Recently, I did some digging on the top performing stocks over the past 10 years. As many of my fellow Foolish writers have pointed out, it becomes obvious rather quickly that all of these companies share something in common: they're all small caps.

However, looking back at the group I realized something else that was pretty surprising to me.

I've gotta create some suspense sometimes... so go check out the artice then either there or back here, let me know what you think. Think there's something I've overlooked? Is this something you already knew? I've already had one suggestion for further research which I think could yield some more interesting insights.

Matt

2 Comments – Post Your Own

#1) On March 26, 2010 at 3:46 PM, catoismymotor (41.70) wrote:

I'll confess to something: I don't own one company with a market cap greater than $7 billion. I am after small and mid cap companies with good track records, geared for growth, with low debt, fair to good inside ownership and a good moat. If they pay a dividend that is the cherry on top.

I have found that companies are like sea going vessels: The larger the boat the longer it takes them to change direction or stop. Smaller companies have the advantage of being more responsive to ever changing market conditions.

Example: I would rather own RAX ($2b) than CSCO ($151b). RAX is in business friendly and low cost of living Texas, gaining more and more of the cloud computing biz. CSCO is in heavily taxed, high cost of living California and has (IMHO) hit its growth limit.  I could lust as easily compare MSFT to RHT or CVGW to DLM.

Disclosure: I do not own any of the companies listed above.

 

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#2) On March 28, 2010 at 6:25 AM, ozzfan1317 (79.35) wrote:

I own only tow big Companies and That is KO and BP in my IRA I have KO and JNJ just hold them for life and let the dividends pile up. In my taxable account I hold mostly small and midcap companies that are geared for growth.

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