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Market Comment - November

November 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

It 's towards the end of the year,and a pat on the back is overdue.No,not just because you should have made good money over the last 12 months,but because as a smaller company investor you are playing into positive long term trends.Do you often have that Canute-like sense that you are continually fighting against the tides of life?Well,as a smaller company investor you aren 't. From 1956-2003,the annualised compound growth rate from the UK smallcompany sector would have been 15.84%,whereas the equivalent return from the FTSE All Share would have been 12.66%.(Source:Dimensional,Matrix Book).That extra 3% per annum makes ahuge difference to your total return over long periods.Now imagine thatyou had focussed on small companies with ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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