10 Strategies for Maximising Profit - Part 6 - Video 30
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Strategy No. 6: Buy Emerging Growth Stocks Buying stocks in emerging companies can be
extremely profitable. These companies tend to fall in the category of mid cap (mid-sized)
or smaller companies. The rewards from investing in these shares tend to be attractive as many
of these companies are in the service and technology sectors of the economy, which at
times grow at a higher rate than older manufacturing industries. These companies generally have
more room to grow than larger established companies. Medium sized companies are also
flexible and can more easily maintain their profitability.
The downside of investing in these companies is that mid cap companies that are still developing
their potential are more of a risk than well established, larger and possibly more stable
companies. Not all of these emerging companies will fulfill their growth projections. It
may also be harder to exit the market when desired as shares in these companies may not
be in great demand.
