Are you ready to explore the stock market’s ‘hidden sector’?
When it comes to hunting for the BIGGEST investment gains, sometimes the trick is to ‘think small’.
Dear fellow Fool,
According to an annual study1, if an investor had invested £100 in the broader stock market in 1955, by the end of 2019 they would have ended up with the handsome sum of £118,100.
But if you had taken that same £100 and invested it in some of the UK’s smaller market-cap companies…
You’d have captured £784,700 over the exact same time period — and earned yourself OVER 6 TIMES as much money from the exact same initial investment.
The £666,600 difference: Cumulative return of a £100 Investment in Small‑Cap Shares vs. The Wider Stock Market from 1955 — 2019
Source: The London Business School and The Numis Corporation, with additional calculations by The Motley Fool UK.
Please see footnote 1 for a more detailed explanation.
In other words, the impact that ‘thinking small’ can have on an investor's portfolio can be absolutely staggering.
So if you’re looking to find out more about buying and holding companies with the potential to make this staggering impact…
Then perhaps you’re asking:
“How can I research these high potential
small‑cap stocks for myself?”
If you‘ve got all the time in the world — and a degree or two in advanced financial analysis—you just may be ready to hunt down the market‘s most ‘under-the-radar’ investments on your own.
But if you’re looking to get research on what we think are the stock market’s MOST exciting small-cap opportunities while doing only minutes of work per month…
Then perhaps it’s time to put Motley Fool Hidden Winners to work for you.
In May 2015, our team here at The Motley Fool UK decided to embark on our boldest undertaking yet…
And to place one of our absolute best investors at the helm.
As the Director Of Investing at Hidden Winners, Mark Rogers’ job is simple:
- He and his team scour the market for what they believe are the absolute best small-cap opportunities… distilling hours of complex financial analysis into one simple, easy-to-read, share tip every month.
- He shares those opportunities with the ‘members-only’ Hidden Winners community, so they can digest all the information immediately.
- Lather, Rinse, Repeat — Mark provides 1 ‘under-the-radar’ small-cap share tip, each and every month, to this select group of Motley Fool members.
So how does the Hidden Winners team do it?
It’s not what you might think.
They don’t chase hot stock tips. They don’t rely on supercomputers or fancy algorithms. And they certainly don’t boast one of those surefire market timing ‘systems’ that so many pundits claim to have.
Instead, Mark and his team focus on three ‘hidden’ pockets of the stock market in seeking out well-managed companies with unbeatable products or services.
These are situations where the core investment thesis rides on the team’s assessment of the superior ‘quality’ of the business in question. True long-term buy–and–hold compounding machines, these firms generally lead a specific niche, and earn attractive returns on invested capital.
These are the rapidly expanding innovators of the UK market, where sales and cash flows are increasing at double-digit rates, but the shares haven’t quite caught the attention they deserve in The City.
While value is a secondary consideration to finding truly winning businesses, there are many special situations to be found in the small-cap market, where lack-of-coverage and ignorance can conspire to completely misprice perfectly good shares.
These are the type of stocks that we think most investors simply DO NOT think about…
Because most investors haven’t put the Hidden Winners team to work for them!
And here’s the best part…
Motley Fool Hidden Winners’ average small-cap stock pick has outperformed the market by 35.3%!2
While the broader market return has fallen by 14.2% since we launched, that hasn’t stopped the Hidden Winners’ team’s average small-cap stock pick from racking up a healthy +49.5% gain!2
And while past performance is no guarantee of future success, I’m sure you’ll agree that’s a stunning achievement… especially when you factor-in how volatile the stock market has been over the past few years.
When you join today, you can get instant unlimited access to all of this market-beating research, including all of our active stock recommendations, our list of ‘Best Buys Now’ stocks and the team’s entire watch list.
But don’t just take our word for it — here’s what real Hidden Winners members have been saying about the service:
“…it’s opened up a segment of the market that I have been interested in but not had the time or confidence to address.”
— T.C., Buckinghamshire.
“Research is good, and put across in a straight-forward, clear way. It’s a good read. I agree that there is value to be had in smaller-cap companies … hope the rest of the UK doesn’t wake up to this fact too quickly.”
— Jonathan Wood.
“Definitely worth it.”
— I.W., Cornwall.
What if I join Motley Fool Hidden Winners,
and realise that it’s not for me?
We fully appreciate that you might still have some questions even after you subscribe.
You might even have some nagging doubts lingering…
But we firmly believe that the best way for you to truly decide whether Motley Fool Hidden Winners is right for you, is to try it for yourself!
And that’s exactly what you can do today, without risking a penny of your membership fee.
You see, when you sign up to Hidden Winners, you’re automatically covered by our ‘no-quibbles’ 30-day Subscription Refund Guarantee…
…meaning you can dive in and experience the service first hand for a full 30 days, and if for any reason you’re not satisfied, simply contact our customer service team who’ll refund your subscription fee — no questions asked.
Just take a look at what you can expect to receive when you join Motley Fool Hidden Winners today:
- 1 high-conviction small-cap share tip a month in your brand-new issue of Hidden Winners. These tips are plucked directly from Mark’s search for the market’s biggest winners — delivered to your inbox like clockwork, month in and month out.
- Immediate access to our ‘Best Buys Now’ — highlighting what we believe are the 3 most timely opportunities on the Hidden Winners scorecard right now.
- 100% access to the “Hidden Winners Universe”, which includes current buy recommendations, watch-list stocks, and shares the team believes should be avoided.
- Up-to-date coverage for every single Hidden Winners recommendation, available via our exclusive members-only website.
- A no-nonsense scoreboard for absolutely all the recommendations the service has ever made — so you can track precisely how well our experts are doing for YOU.
- 30-Day Subscription Refund Guarantee: If you’re not bowled over by the service we provide, simply cancel at any time within your first 30 days and we will refund your subscription fee in full — no questions asked.
Simply click the button below to get started — and if for any reason you don’t love what Hidden Winners has to offer, you can get a full subscription refund within your first 30 days, no questions asked.
To making the most out of investing opportunities, big or small!
Motley Fool UK
a) Your card will be charged £129.00 for your first year of service. Your subscription will then automatically renew at £199.00 annually.
You may cancel your membership at any time by contacting [email protected]. If you cancel within your first 30 days you will receive a full subscription refund. After this time, your subscription is non-refundable.
2Choose a payment option
3Enter payment details
RISK WARNINGS AND DISCLAIMERS
The value of stocks and shares and any dividend income, may fall as well as rise, and is not guaranteed so you may get back less than you invested. You should not invest any money you can’t afford to lose and should not rely on any dividend income to meet your living expenses. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, administrative costs, withholding taxes, different accounting and reporting standards, may have other tax implications, and may not provide the same, or any, regulatory protection. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock rises in the currency of origin. Any performance statistics that do not adjust for exchange rate changes are likely to result in inaccurate real returns for sterling-based UK investors.
We have taken reasonable steps to ensure that any information provided is accurate at the time of publishing. Any opinions expressed are the opinions of the author only. The content provided in this article has not taken into account the circumstances of any specific individual, and does not constitute personal advice or a personal recommendation for any individual; neither should it be relied upon by any individual when making an investment decision. If you require any personal advice or personal recommendation, please speak to an independent qualified financial adviser. No liability is accepted by the author, The Motley Fool Ltd or its Officers, or Richdale Brokers and Financial Services Ltd or its Officers, for any investment loss, or any other loss or detriment experienced by any individual for any investment decision, whether consequent to, or in any way related to this content, the provision of which is an unregulated activity. The Financial Ombudsman Service and Financial Services Compensation Scheme may consider certain investment related claims. Please refer to FOS and FSCS for up-to-date information, including eligibility criteria.
Fool and The Motley Fool are all trading names of The Motley Fool Ltd. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the FCA (FRN: 422737). In this capacity we are permitted to act as a credit-broker, not a lender, for consumer credit products. We may also publish information about consumer credit, loan, mortgage, insurance, savings and investment products and services, including those of our affiliate partners. We do not provide personal advice neither will we arrange any product on your behalf. Should you require advice you should speak to a qualified financial adviser.
The Motley Fool Ltd. Registered Office: 5 New Street Square, London EC4A 3TW.
Registered in England & Wales. Company No: 3736872. VAT Number: 188035783.
© 1998 – 2022 The Motley Fool. All rights reserved. The Motley Fool, Fool, and the Fool logo are registered trademarks of The Motley Fool Holdings Inc.
- Data from The London Business School and The Numis Corporation, with additional calculations by The Motley Fool UK. Source: https://www.london.edu/news/uk-small-cap-outperforms-ftse-all-share-index-1756. The ‘6 times’ outperformance figure is derived from the cumulative return of a notional £100 investment in both the NSCI index (covering the bottom tenth of the main UK equity market by value) and the FTSE All-Share index for the 65 year period between 1955 and 2019 inclusive. The cumulative return for each index was £784,700 and £118,100, respectively.
- Motley Fool Hidden Winners has delivered an overall return of 49.5%. The S&P UK Broad Market Return index has delivered an overall return of 14.2%. Returns are calculated using a time-weighted rate of return (TWRR) methodology that includes dividends reinvested and excludes trading costs. The S&P UK Broad Market returns include dividends reinvested. Returns are measured from the date of each recommendation to the close of trading on 31/07/2022. The service’s inaugural recommendations were made on 12/05/2015 and are now issued at the rate of one per month.