| There is one sub-class of small cap stocks which offer the potential for substantial long-term gains – perhaps more than any other asset class in existence. Not just 100% or 200% gains but up to 100,000% or even 200,000%. The stocks I am talking about are microcaps, companies which have a very low market capitalisation compared to other listed peers.
The superior growth potential microcaps have compared to their blue-chip and mid-cap cousins comes from simple mathematics. Take a blue-chip like British American Tobacco (LON:BATS) for example. In the last financial year BAT made revenues of £14.75 billion. These have been growing at a steady rate for years at constant exchange rates – up by 6.9% in 2016. But given the company's size, sales are unlikely to ever grow by double digits or higher unless a significant corporate transaction occurs. | 
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