Duelling Fools: Blue Chips vs Small Caps

Published in Investing on 15 July 2009

It's David vs Goliath in this week's Duelling Fools. Should investors go for big or small companies?

Once again we've rounded up two Fools to debate an issue that often divides investors. Should your portfolio be dominated by blue chip shares, with their proven business models and chunky dividends, or should we be looking to outperform by hunting for undiscovered bargains in the lower reaches of the market where fund managers fear to tread?

This week's Duel...

Note that you need to be a registered Fool user to vote, but it only takes a minute to sign up.

 

Last week's result...

Poor Harvey Jones. It was always going to be a big ask to convince people that the economy is recovering already. It was a valiant effort but only 27% of you agreed with him. Meanwhile a whopping 61% of you sided with uber-bear Bruce Jackson, reckoning that we've still got a long way to go before we see any real signs of green shoots. 

 

> Vote in this week's duel here.

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Comments

The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.

supersol42 15 Jul 2009 , 4:06pm

Buying individual shares is not usually a good idea for most savers. Unit trusts are wonderful collective schemes that allow the risk to be spread, and at least in theory, offer the benefit of expert management.

Buying with a lump sum is not usually a good idea for most savers. £100 or so dripped monthly into a unit trust ISA will give the benefits of pound cost averaging, and a tax advantage.

Fingered 15 Jul 2009 , 4:17pm

Not a fund manager, UnitT salesman, Bank ISA advisor or IFA by any chance are you supersol42?

LastChip 15 Jul 2009 , 4:30pm

Hmm: expert management??

It was experts that I recall, that brought down the banks, crucified pensions, ravaged endowments and destroyed portfolios.

Unit trusts: I don't think so, investment trusts maybe.

Fingered 15 Jul 2009 , 4:41pm

Hey come on all you Long Term Buy and Hold investors, ( aka as LTBH'ers) .....pile in, snap up those cheap stocks (big cap, mid cap, small cap - who cares ) it's a green shoot rally and the recession is over don't you know? Explosive growth on the small caps! Hey you could even go one step further and load up on penny share stocks in the AIM market to get many 1000's of % of capital gains in a year or less.

QANoProducts 15 Jul 2011 , 8:01pm

This is a test, hence the jklawfjklaf

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