We recognise that most small businesses are destined to stay small given their limited scope for both structural growth and meaningful differentiation. Such businesses constitute the bulk of the "smaller companies’ universe" but are of no appeal to us. What does intrigue us about that universe is that it contains a subset of immature but potentially high-growth companies. By identifying attractive growth companies earlier, we seek to benefit from growth at an earlier stage in a company’s lifecycle and retain ownership of successful companies as they grow and thrive. We ultimately see our role as investing in what are potentially the larger companies of the future as opposed to the smaller companies of today. — Edinburgh Worldwide Investment Trust Smaller companies as a group have made far more profitable investments than larger ones. Insist on financial strength. Growth can only be sustained by companies with strong finances. It will be undermined by those that have to guzzle cash t...
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