Rookie of the Year?

Is it good to be a rookie?

Source: KKLZ993

There are a lot of advantages to being new on the job: you see things differently; you’re more likely to network; you look for answers off the beaten track. We’ve all heard about hungry rookies whose determination helped them conquer a steep learning curve. Sometimes all it takes is a naïve question to turn things around.

Of course, there are risks: rookies can be arrogant and reckless, sinking their own careers almost before they start: apprentice actors who argue with directors; graduate students picking fights over discredited theories. They don’t know what they don’t know, and this can make them dangerous.

In the investing world, small-cap stocks are like rookies. They’re not restrained by the old ways, so they can take their business where no one has gone. Sometimes a new market or inefficiency just needs a little exploring to turn it into a big opportunity.

But small companies also fail at a faster rate. They often don’t have the capital or experience to weather a downturn. This is why small stocks tend to outperform large-caps over the long haul, but they do so with greater volatility along the way.

Source: Morningstar

Learning something can beat knowing about it if you’re curious, humble, and determined. Just remember: it’s nice to be rookie of the year, but it’s better to make the playoffs.

Douglas R. Tengdin, CFA
Chief Investment Officer
Phone: 603-224-1350
Leave a comment if you have any questions—I read them all!

Follow me on Twitter @GlobalMarketUpd •
By |2017-07-17T12:23:07-04:00January 12th, 2015|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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