Small and mid-caps have become increasingly attractive since fewer large caps have dominated the headlines, although last year has seen small and mids move sideways and the Top 40 up by 17 per cent.
This does not mean the trend will continue. Looking at the valuations on a broad level is also not the fairest way to assess the attractiveness of the different size buckets. Small isn’t always risky, as big isn’t always safe. Rather try and identify good businesses that are mispriced, the rest will take care of itself. For more CNBC Africa’s Gugulethu Mfuphi’s chats with guests Gary Booysen, Director & Portfolio Manager, Rand Swiss and Andrew Dittberner, Chief Investment Officer, Private Client Securities, Old Mutual Wealth.
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