Highlights from our webinar 'Investing in Smaller Companies'
On May 5, we were delighted to host our third webinar of 2022: 'Investing in Smaller Companies', which was sponsored by BlackRock.
Watch the full webinar replay below
A huge thank you goes out to our wonderful guests, Roland Arnold from BlackRock and Graham Wells from GroWiser, who kindly supported the webinar.
And we'd also like to thank our audience for tuning in to Boring Money Presents…
Hundreds of people registered for the event, and we received plenty of questions and helpful tips from you all. Unfortunately, we weren't able to respond to all of them in the hour timeslot, but don't worry! You can post questions to our panel of advisers below.
Highlights from our webinar
Here are some of the topics we discussed:
How to distinguish an investment trust from other companies
We defined the difference between an investment trust and 'open-ended' investment companies (known as unit trusts).
What is a discount?
'Discounting' refers to when investors seek to buy shares that are underneath their fundamental value. Historically, a 15% discount is a wide discount.
Small-Caps can be more volatile than other companies
The share prices of Small-Caps are more volatile than the underlying earnings of the companies. But in the mid to long term, the prices will tend to fall into line with those underlying earnings.
Compounding can have a powerful effect
For example, if you had invested £100 in 1955 and put it in the market, you'd now have £109,000 if you had invested in Large-Cap (large companies), but £961,000 if you had invested in Small-Mid (small-to medium-sized companies). Yet, the latter would have compounded at a rate of just 3.8%.
Don't worry so much about the short term - focus on the longer term
It's important to have a mid to long-term horizon when investing in Small-Caps. The longer you invest, the more time you'll have to ride out the stock market storms.
Check out our webinar polls!
We ran a few polls to find out a bit more about our attendees. Here are some of our key findings.
Can you confidently explain what an investment trust is?
Do you have Small-Caps funds in your portfolio?
Over the next 12 months do you think global stock markets will:
Find out more about BlackRock Smaller Companies Trust plc.
Visit their website here.
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