👉️ Bitcoin: Hit $80,000 for the first time ever. Can this run continue?

👉️ Does Size Matter? And no, we’re not talking about your junk

👉️ Start Your Own Newsletter: Start sharing your passion online today

Bitcoin hits $80,000 for the first time ever 📈 

Alex Thorn, head of research at Galaxy Digita, said “Crypto is poised to enter a golden era. Trump has promised to make America the ‘crypto capital of the world’ and his high-level team is filled with strong crypto advocates… The pro-crypto nature of his team, family, and donors increases the likelihood that Trump follows through on his campaign promises to the industry.”

Bitcoin was deemed a safe asset regardless of the election results, however still not considered a security by the SEC.

Trump has entertained the idea of a strategic national bitcoin reserve and has mentioned keeping all bitcoin mined in America.

Do you think Bitcoin will continue to outperform the market in 2025?

Why Does Size Actually Matter?

And no, I’m not talking about your junk…

I’m talking about market caps.

The size of the companies you add to your portfolio matters.

And I’m going to be showing you EXACTLY why you should care below ⬇️ 

Before we dive into the pros and cons of market caps, it’s important to understand exactly how big each one is.

• Micro Cap: $50 million to $300 million

• Small Cap: $300 million to $2 billion

• Mid Cap: $2 billion to $10 billion

• Large Cap: $10 billion to $200 billion

• Mega Cap: $200 billion and more

Let’s define the word “cap” A.K.A. capitalization:

A market capitalization or “market cap”, is the term used to estimate the total dollar value of a companies outstanding shares.

To get this number, all you have to do is multiply the company’s outstanding shares by its share price.

Example:

Let’s say Company A has a share price of $100 and has 1 million shares outstanding. Its market cap would then be $100 million ($100 x 1 million shares). By definition, this company would be classified as a micro-cap.

The market cap is a good way for investors to judge the size and value of the company, which can be important information when analyzing an investment.

Pros of Micro & Small Cap Companies

As investors, we have to remind ourselves that most successful large-cap companies once started out as a small business.

Small caps give investors the chance to enter into a business in its early stages of operation, when they’re coming out with new product lines, entering new markets and establishing their customer bases.

When it comes to investing in micro and small-cap companies, it’s important to realize that these stocks just have low valuations, and they can grow in ways that large and mega-cap companies cannot.

For example, Apple is not going to be the next Apple because it already is.

There comes a point where growth slows down, even at the highest level of success.

Micro and small-cap companies have the luxury of a larger runway for growth, which can be beneficial for investors like you.

I’d give you some examples of micro and small caps but you’ve likely never heard of them.

Cons of Micro & Small Cap Companies

Investing in micro and small caps is not all sunshine and rainbows ☀️🌈 

With smaller capitalizations comes more volatility.

Because these companies are still finding their way, they’re naturally riskier investments and therefore making the stock more volatile in nature.

These are not the types of companies you want to be holding during a recession, but when an economy emerges out of a recession and into an expansion, small caps often outperform the market.

Another con (which could also be a pro depending on how you look at it) is the fact that small-cap companies are more prone to mergers & acquisitions.

Whether or not this is a good or bad thing depends on who is acquiring them and for what reason, but keep in mind that companies with smaller valuations are more commonly bought out or merged with others.

Pros of Large and Mega Cap Companies

Large and mega-cap companies dominate their industries and are typically very stable.

These often include defensive/blue-chip stocks. These are stocks that don’t fall too much with the market but also don’t see significant gains the other way either.

They are very stable and perform well during periods of market volatility.

Categorized by dependable earnings, solid reputations and good brand awareness, these types of companies tend to be less volatile and will reward you with stable and growing streams of dividend income.

Some examples of large and mega caps include Microsoft, Apple, Amazon, Google and McDonald’s.

Cons of Large and Mega Cap Companies

These companies are not meant for investors with a high tolerance for risk because they likely won’t generate 100x returns.

They are attractive for the long-term investor who wants to build wealth over time, rather than the speculative investor who wants to make a quick dollar overnight.

So if you’re in a bull market, large and mega caps will provide investors with returns that are sometimes underwhelming.

But again, that’s not always the case.

Take Nvidia for example, who is up 206% YTD.

Or Meta, who is up 70% YTD.

It really depends on the circumstance and the market.

Dividend Dominators Favourite Size

Because I am a long-term dividend investor, large and mega-cap companies make up the bulk of my portfolio.

Personally, I’m not much of a gambler.

I do take risks every now and then, but they’re calculated. I don’t invest in micro or small-cap companies that I don’t understand or can’t value myself.

I like to see stable earnings year over year, I like to see a history of performance, and I love a company with a wide moat.

All of these are characteristics I look for when starting a new position.

But that doesn’t mean there’s no room for micro and small caps in your portfolio.

But if you are a dividend investor, it’s fair to say that you should probably stay away from them for the time being.

Alex (The Dividend Dominator)
Founder and CEO of Dividend Domination Inc.
Follow me on Twitter, Instagram and LinkedIn

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