Tag Archive for: small caps

Nice analogy about large caps vs. small caps

I like this analogy from “A Rough Ride on the Risk Curve” from The Wall Street Journal:

“Because of their deep balance sheets and diversified businesses, large caps can often ride out storms like cruise liners, while small caps are tossed about like sailboats.”

A powerful analogy can persuade your audience when dry, rational arguments fail.

On the other hand, a bad analogy can send your reader astray. That’s what happened to me with a “lollipop” hike.

Note: these analogies are from some years ago, but they’re still powerful. The cruise liner analogy appeared in The Wall Street Journal on Nov. 26, 2007.