Now you will agree with me that even referring to this phrase makes one sound smart. Even though it’s not at all easy and infact, a grossly misunderstood concept.
A common investor’s best bet when dealing with stock markets, is to use their Common Sense.
So read the paragraphs by John (italicized above) again. Don’t ignore large-cap stocks just because everyone else is saying that they don’t move much. Apart from focusing on upsides, its also very important to protect the downsides when investing. And large caps can help you do that. They generally* don’t fall as sharply as most small-caps.