A Common Misconception in Stock Market

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There is a Common Misconception among people that are new to the Stock Market that a Large Cap Stock has moved up a lot and there is a low chance of it giving a Multibagger Return whereas a Small cap Stock may give you a Multibagger Return as they haven't given a Bull Run yet. Now, this is kind of true but I also say this is a misconception because if you Invest in a Large Cap Stock that gives you Stable 15-20 percent returns the risk you take is way less than the risk you will have to take if you go for Smallcap Stocks.

The reason I am making this post is that just yesterday I saw a Youtube Short which was suggesting not to buy PIDILITE which is one of the biggest Monopolies here in India and rather buy a Small Cap Stock that has a lot of potential. I do agree that the Stock he suggested indeed looks good but when it comes to PIDILITE they often buy out their Competitors if they feel even the tiniest bit of danger. So in my opinion and I am no Financial Advisor Keeping PIDILITE is a safer choice but at the same time it does give you decent returns.

The Moral of the Post is that don't go believing everything a Finance Youtuber says as most of the time you may end up regretting that decision. It is ok to get the suggestions but do your own proper research before you put your money into it.