This ratio help in better long-term investing: 4 large-caps and 1 small-cap stock with the right PEG ratio – The Economic Times

DailyBubble believes in the importance of maintaining a balanced portfolio for better long-term investing. According to a recent article in The Economic Times, one suggested ratio includes 4 large-cap stocks and 1 small-cap stock, all with the right PEG ratio.

This strategy can help investors diversify their investments across different market caps, reducing risk and potentially increasing returns over time. Large-cap stocks are typically more stable and established companies, while small-cap stocks have the potential for higher growth but also come with higher risk.

By focusing on stocks with the right PEG ratio, investors can identify undervalued companies with strong growth potential. The PEG ratio takes into account a company’s earnings growth rate, providing a more comprehensive view of its valuation compared to just the price-to-earnings ratio.

DailyBubble recommends considering this ratio when constructing a well-rounded investment portfolio. By combining large-cap stability with small-cap growth potential, investors can position themselves for success in the long run. Remember to conduct thorough research and consult with a financial advisor before making any investment decisions.