In my opinion, the successful small caps are not the competitors of the large caps. They are companies which provide supplementary goods or services. They serve in a niche market that the large caps have somehow under represented. Thats the main reason why they are good bolt-on M&A targets.
Good small caps may be few because they are very likely to be bought out.
Many people cash in their millions as soon as they can. It takes a visionary and a lot of hardwork to turn a small company into a large cap. I don't endorse Tesla because of the valuation, but I happened to read the book about Elon Musk. He, too, sold a few of his start-ups before he launched Tesla.
In my opinion, the successful small caps are not the competitors of the large caps. They are companies which provide supplementary goods or services. They serve in a niche market that the large caps have somehow under represented. Thats the main reason why they are good bolt-on M&A targets.
Good small caps may be few because they are very likely to be bought out.
Many people cash in their millions as soon as they can. It takes a visionary and a lot of hardwork to turn a small company into a large cap. I don't endorse Tesla because of the valuation, but I happened to read the book about Elon Musk. He, too, sold a few of his start-ups before he launched Tesla.