Lesson 24 of 43 (Large Cap Investing): A Step-by-Step Guide to Picking the Best Large Cap Stocks

 
  1. Most investors consider a large cap company to be any stock with a market cap above $10B.
  2. Large cap stocks tend to be more stable, less risky, and better able to handle challenging bear markets.
  3. Large cap stocks tend to be well-researched and understood by analysts and investors alike, which makes it difficult to find hidden gems.
  4. We walk through a step-by-step guide to finding the best large cap stocks, including screenshots and direct links to a stock screener that's pre-filtered for high-potential large cap stocks.

 

Having just dug through the haystack to find the best small cap needles, now it's time to reverse course and focus on the giants in the market. 

Today we’re going to cover four important questions about finding the best large cap stocks:

  1. What are large cap stocks?
  2. What should you know about investing in large cap stocks?
  3. Which large cap stocks perform best?
  4. How do you find the best large cap stocks to buy? (A step-by-step guide)

What Are Large Cap Stocks?

A large-cap stock is defined as a company with a market cap between $10B - $300B.

A mega-cap stock is defined as a company with a market cap of $300B and above.

For the purposes of this lesson, we’ll consider large caps to be any company with a market cap above $10B.

Large caps are the biggest companies trading on the market. They’re often (but not always) fairly mature companies that have been around for quite a while.

Their large cap status usually means they already have a product that’s found a wide market of interested customers.

As we saw in our previous lesson on small cap stocks, large caps have historically performed...

This is just a preview from our free course: How to Invest in Stocks: Learn How to Buy Stocks, Make Money, and Avoid Mistakes
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