Why small companies have good chances on the stock exchange

Lambs on the dike

Companies with expertise in flood protection and renewable energy should have good revenue opportunities in the years to come.

(Photo: dpa)

Frankfurt Small and medium-sized companies are likely to benefit in particular from the upcoming economic upheavals related to digitization and climate protection. Because they are active in many sectors that can supply the necessary technology, for example for the energy transition. It is therefore also worthwhile for investors to have shares of so-called small and mid caps in their portfolio.

“Small and medium-sized companies will have to shoulder the economic transformation in the energy transition,” says Götz Albert, chief investment strategist at the Lupus Alpha fund. As an example, he cites the planned replacement of oil and gas heating systems: “Process and product innovations will be in demand that you will find in listed medium-sized companies.”

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