Sunday, September 18, 2011

Large Caps on Sale - any way you look at it

I was thinking about my last post on large caps, broken out by quintiles.  It was market-cap weighted since I summed all the companies together and I was wondering whether some of the largest ones like Apple etc were dominating the numbers.  To look at it another way, I tried doing it with each company equally weighted and got similar results shown below for those interested... I did this by assuming the same amount invested into each company.

The results are not very different - the largest cap companies continue to be cheapest and have the best margins and ROE.  The Market Cap column in this table represents the sum of $100 million invested in each of the 100 companies.



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