Scott Savage

💼Beyond Large & Small Caps: Why Allocate to Mid Caps in Your Portfolio?📈 💵Many investors focus on large-cap and small-cap stocks, overlooking the potential benefits of mid-caps. This article, "Why Allocate to Mid Cap?", explores the reasons why mid-cap stocks could be the sweet spot of the market capitalization spectrum. 📈The Mid Cap Advantage: Stability & Growth Combined📈 The article explains how mid-cap stocks offer a compelling blend of characteristics: ✅Greater Stability Compared to Small Caps: Mid-cap companies have typically established their business models, leading to more stable financials and reduced risk compared to their smaller counterparts. ✅Superior Growth Potential Than Large Caps: Unlike large, mature companies, mid-caps still have room for significant growth, offering investors the potential for attractive returns. The Montag & Caldwell Approach to Mid-Cap Growth Investing ✅High-Quality Companies: They prioritize companies with strong financials, proven management teams, and leading market positions. ✅Disciplined Valuation: A proprietary valuation model is used to ensure they're buying companies at a discount to their intrinsic value, providing a "margin of safety" for investors. ✅Risk Management: The strategy includes diversification controls and strict sell discipline to mitigate risk. The article also clarifies what investors can expect from a mid-cap growth strategy: ✅Outperformance in Specific Market Conditions: This approach tends to shine during periods of low to moderate economic growth and low-interest rates, where companies with consistent earnings growth are favored. ✅Potential for Downside Protection: The focus on valuation and quality can help reduce downside risk compared to other investment styles, particularly in down markets. ✅Trade-off During Periods of Speculation: While achieving strong returns over most market cycles, the strategy might underperform during periods of short-term, momentum-driven speculation. Read this article to find a valuable introduction to the potential benefits of including mid-cap stocks in your portfolio. It also offers insights into a specific investment approach focused on quality, valuation, and risk management. Montag & Caldwell Mid Cap Growth Overview: https://lnkd.in/g8aZNmtc Info ≠ Advice CONTACT (404) 836-7100 | [email protected] 3455 Peachtree Road, NE, Suite 1500 Atlanta, Georgia 30326-4202 Disclosure: https://lnkd.in/eC8eSCPX

Mark Higgins, CFA, CFP®, urges trustees to internalize the principals expressed in five quotes that he cherry-picked from his book, Investing In U.S. Financial History. Applying these principals can help trustees reduce costs, minimize unnecessary portfolio complexity, and reallocate their time to resolving previously neglected financial challenges, he tells #EnterprisingInvestor. https://bit.ly/3yCoPMm