Is there something permanently broken about investing in little companies with good operations and strong balance sheets?
That used to be a winning formula…. A: Absolutely not. I guess it’s like walking through a bank vault. There might be such stacks of money all over every horizontal surface that actually spying an old Krugerrand half-hidden on the floor isn’t such a spectacular find. Thankfully, we’ve been very fortunate, continuing to find extraordinarily successful old- and new-technology companies and industries in the “red chip” arena…. Q: What kind of criteria do you use in this search for the best in what you like to call the red-chip arena? A: …We created the phrase “red chip” back in the early ’90s to really mean any company that wasn’t considered a blue chip in the U.S. marketplace…. We’re really looking at companies in the $50 million to $1.5 billion market-cap range that have the potential to grow 3 to 10 times in price and have little in the way of Wall Street following or recognition. Our true focus is on companies ranging from $50 million to $200 million in market cap. This is whe
