Image Credit: Alex Nabaum

The best-performing stock of the past 30 years isn’t Warren Buffett’s Berkshire Hathaway Inc., Microsoft Corp. or Apple Inc. It’s little-known Jack Henry & Associates Inc., which provides technology to banks and other financial firms from its headquarters in Monett, Mo. (population 8,873).

Jack Henry’s story is common among the “superstocks“ with the highest long-run returns. Once-tiny companies, often neglected by professional investors for years, end up earning higher returns than stocks that were far bigger and better-known.

Surprisingly, small investors may have a big edge over Wall Street’s giants in capturing these gains. That’s because, to earn such superior long-term results, you have to withstand bone-cracking short-term downdrafts along the way — something most fund managers can’t do.…

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