Top few hundred companies

Some fund managers, especially the big ones, are restricted to investing only in the top 200 companies. Then some others are index-huggers; do nothing but buy and sell according to the index. Fools park their money there; lazy people paying lazy people lots of money to "look" after their investments.

A fund with lots of capital invested cannot dabble too much with small companies because when it purchases or sells a stock by millions of AUD, it affects the share price drastically.

Hence, small caps are the realm of boutique stock brokers and crazy investors like me. But when it comes to performance, there are like rockets; movements in either direction are very exaggerated.

I have stopped touching big companies for a long time now because.... why compete with the big fund managers? Their charts are very lethargic with heavy inertia. On the balance, I have better research work on the small caps than lots of city brokers. And most of all, I like very simple basic arithmetic.