Outstanding Investor Digest



Home




Subscriber Areas


Audio Archives
Client Letters
OID Features Online
OID.com Exclusive
Features

Indexes:
Investors
Funds et al.
Companies &
Investments



Contact Us

About Your
User Name
& Password


Guest Areas


Free Reprint

Online Excerpts

Investors in
Our Latest Edition

Companies &
Investments in
Our Latest Edition



About OID
Subscribe
Online Advertising
Online Classifieds

Employment
Opportunities



TWEEDY, BROWNE COMPANY L.P.
What Has Worked in Investing
 (continued from preceding page)


Table 29:
Investment Returns by Market Capitalization Decile for All Stocks Listed on New York and American Stock Exchanges, 1963 - 1980





Decile

1 (Smallest market
  cap companies)
2
3
4
5
6
7
8
9
10 (Largest market
  cap companies)



Average
Annual
Return

32.8%

23.5
23.0
20.2
19.1
18.3
15.6
14.2
13.0
9.5

Cumulative
Value in 1980
of $1
invested in 1963

$46.28

19.50
21.16
14.95
12.79
12.68
8.82
7.50
6.70
4.12


Average Market
Capitalization
of each decile
(Millions)

$4.6

10.8
19.3
30.7
47.2
74.2
119.1
209.7
434.6
1102.6



Median
Share
Price

$5.24

9.52
12.89
16.19
19.22
22.59
26.44
30.83
34.43
44.92


Average %
listed on
AMEX in
each decile

92%

77
52
34
21
13
8
5
3
2


Small Capitalization Stocks in the United Kingdom, France, Germany and Japan, December 31, 1974 through December 31, 1989
John R. Chisholm examined the relationship between market capitalization and investment results for companies in the United Kingdom, France, Germany and Japan in "Quantitative Applications for Research Analysts", Investing Worldwide 11, Association for Investment Management and Research, 1991. Companies in each country were ranked according to market capitalization at the end of each year and sorted into quintiles. The study period was December 31, 1974 through December 31, 1989 (fifteen years). Equal investments were assumed to have been made in each stock, and the stocks were assumed to have been sold after one year. The results were U.S. dollar results. Table 30 shows the annual compound returns for the top and bottom quintiles.

Table 30:
Investment Results According to Market Capitalization in the United Kingdom, France, Germany and Japan, December 31, 1974 - December 31, 1989


Market Capitalization Category
Smallest market capitalization quintile
Largest market capitalization quintile

United
Kingdom
33.7%
24.3


France
29.5%
21.4


Germany
21.6%
20.2


Japan
32.1%
23.6


Page 35 of 42

Page: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13
14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27
28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42

(Return to Table of Contents)

(continue to the next page)



©Copyright 1996-2010 Outstanding Investor Digest, Inc. All rights reserved.
295 Greenwich St., Box 282, New York, NY 10007 (212) 925-3885