Everyone wishes they had bought companies like Google or NVIDIA before they matured into the behemoths they are today. However, very few are willing to take the risk. The argument behind not doing so is quite rational, since small-cap stocks were going through a rough patch.
Still, abandoning small-cap growth stocks altogether is not a good idea. A small portion of your portfolio dedicated to promising names can pay off significantly if even one successfully breaks into the mainstream. Buying small-cap stocks today gives you a great entry point before further interest rate cuts and changes in Wall Street’s investing philosophy lead to a renaissance. Here are three to look into.
This post originally appeared at 24/7 Wall St.