Investors often overlook small-cap stocks in favor of household names, but these smaller companies can offer compelling opportunities for patient investors. While these investments typically experience more price volatility than their larger counterparts, the potential for substantial returns makes them worthy of consideration.
Small-cap companies often operate in emerging markets where they can rapidly expand their market share. This stellar growth potential, combined with their smaller market capitalizations, can lead to significant stock price appreciation over time.
This post originally appeared at The Motley Fool.