Penny Stocks Provide Better Returns than Large Cap Stocks

Penny Stocks Provide Better Returns than Large Cap Stocks

The best-performing stocks on the market are companies with tons of cash… groundbreaking products… and growing businesses — the same stocks that have proven to be the BEST investments over the last century.

The one thing that makes these stocks different is… they’re still small enough to make them affordable for small investors to make a grab for their share of the profits!

Since 1926, no other class of stock has made investors more money than these penny stocks. Let me repeat that…

Over the last 80 years, NO group of stocks has made investors more money than penny stocks. Not mid caps, not large caps, not gold stocks and not retail stocks.

In fact, a famous study done in 1996 by Ibbotson Associates — a major research firm based in Chicago — proved this once and for all.

After compiling cold, hard data on small- and large-cap stock returns from 1926-1996, Ibbotson Associates proved that small-cap penny stocks outperform large caps…

* 56% of the time in any given 1-year period
* 66.1% of the time if you hold for 10 years
* 94.2% of the time if you hold for 20 years
* 100% of the time if you are willing to hold for 33 years or more!

In other words, investors who buy shares of the smallest companies on the market beat those who buy stock in companies like Microsoft, GE, IBM, Intel and Cisco. That’s exactly why everyone generates the same returns year in and year out. It’s ridiculous!

But what investors don’t realize is…

* There are 3 times more small-cap stocks than large caps on Wall Street right now. That means you have 3 times as many opportunities to make huge gains every month.
* The longer you are willing to hold solid small-cap stocks, the more money you can make.