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Market Coment - December

December 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It’s towards the end of the year, and a pat on the back isoverdue.  No, not just because you should have made good moneyover the last 12 months, but because as a smaller company investor youare playing into positive long term trends.  Do you often havethat Canute-like sense that you are continually fighting against thetides of life? Well, as a smaller company investor you aren’t.From 1956-2003, the annualised compound growth rate from the UKsmall company sector would have been 15.84%, whereas the equivalentreturn from the FTSE All Share would have been 12.66%. (Source:Dimensional, Matrix Book).  That extra 3% per annum makes a hugedifference to your total return over long periods.  Now imaginethat you had f ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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