In investing, however, it’s often a good idea to resist temptation. In fact, there’s still an investment case for bigger stocks.
Let’s start from an overlooked fact – that it is incredibly rare for companies to get very big: according to the ONS, only 0.12 per cent of the 2.17 million firms in the UK have more than 1000 employees. This tells us that there are massive barriers to growth. The very fact that a tiny handful of firms have overcome these suggests that they are doing a lot right. (Though whether this is by skill or luck is another matter!) This in turn implies that they have the qualities to survive many shocks, and to grow more.