Author and investor Jim Slater states of large-cap companies, “elephants don’t gallop”. And as history shows us (see Chart 1) mid- and small-cap companies have enjoyed superior growth over the long term.

Over the long term, value styled investing outperforms growth styled investing. However, for the last seven years, both globally and in South Africa, value investing has underperformed.

Dr Andrew Dittberner, Chief Investment Officer, Cannon Asset Managers, warns of the danger of confusing “Big” with “Great”.