At this year’s Invest for Kids Conference, Henry Ellenbogen, the founder of Durable Capital, highlighted two of his favorite small-cap ideas and explained why small caps are a better place for investors to look for alpha over other sections of the market. Ellenbogen began his presentation by drawing attention to data showing how smaller companies have driven outperformance over the past decade. Within this bucket, only a small percentage of companies are actually worth acquiring. “If you have 4000 public stocks,” he explained, “somewhere between 30 and 100 truly persist to drive wealth.” Even though they only account for “between…
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