The fundamental relationship between risk and return in the stock market, where businesses must bet on their best ideas and face failure for a chance at reaping rewards, makes it essential that all investors, fresh-faced and market-tested, keep an unwavering focus on the quality of these bets to build high conviction in their portfolios.
This point is especially relevant for investors in small-cap stocks, who must research an asset class where information tends to be scarce and volatility high, putting a psychological price on exposure to its historically superior returns.
In the interest of equipping readers with a solid risk framework on which to base their small-cap due diligence, here are three stocks across the risk spectrum that make a high-conviction case for shareholder value.
Blue chip: Olympia Financial Group
At the lower end of our risk scale for small-cap stocks is Olympia Financial Group, a dividend payer…
