"As a micro cap investor what you are looking for is something where it can grow against the industry returns or grow against negative economic trends.We buy established small and microcap companies with customers, revenues, and earnings. We look for companies with pristine balance sheets including large cash balances, good growth prospects, seasoned management, large product and customer bases, defendable competitive positions, , and high returns on capital which generates free cash flow"
"We are looking for companies that are unloved, there is no institutional sponsorship, there’s no analyst coverage"
"If we can identify a catalyst, we have an answer to the question of how we are going to make money, and also a sense of when that will happen. We earn money only when the gap between the discounted market price and the intrinsic value closes. We want this closing to be upwards; it does no good if the intrinsic value falls to the price of the security. And the closing should be timely — a security trading at a significant discount may not be a good investment if the spread closes only over an extended period. In most cases, we try to identify a specific catalyst that will close the gap."