there is a problem with small cap stocks. they normally have fewer competitive advantages than big cap stocks. how a small companies can compete and outperform the big one. of course, the competitive landscape can change and the small companies can become bigger. but this chance rarely happens. the leading players with many competitive advantages can take most of the market opportunities to grow.

the growth of small company is normally the growth of its industry. how the small company can growth faster than its industry and big companies when it dose not have competitive advantages. this growth faster than normal growth of course can happen but will be seldom and need careful analysis. all competitive advantages needed for faster growth than the industry growth are in the hand of big players already and it is the big players , by using these competitive advantages, which use up all market chances to grow faster and more stably than the industry growth. be carefull with the growth of small cap. it is not long term. it last only a few quarters.