Why Profitability Matters in Small Caps

Smaller companies are often excused for their lack of profitability because these firms invest ahead of their growth—this may be a reasonable argument in theory.

But, at Polen Capital—we believe profitability matters.

In our opinion, certain historical data shows that small companies that can generate profits and then reinvest those profits wisely outperform less profitable or unprofitable firms, especially over longer time periods.

Read the article here