Much like the over-expansion of government-led infrastructure projects, KFC China will experience diminishing returns if it continues to expand into areas with lower spending power.
This means that while small-cap stocks have similar returnsto their bigger brethren, they do not always move in the same direction or experience the same magnitude of change.
Transactions such as chargebacks and returns are more expensive to process and retailers may be susceptible to paying higher fees should they experience a high percentage of chargebacks.
The market has shifted from product toexperience and those who are still product orientated are fighting a losing battle with ever diminishing returns in revenue and market share.
Whether you're talking about illiquid securities or affirmative action, in my experience there's plenty of room for those with alternative agendas to fudge their investment returnsto justify their actions.