Investing in Small Companies Can Lead to Investment Success Understanding the Business is Essential

Receive More Bang for Your Buck With Smaller Companies

Our sweet spot tends to be in the $2-3 billion range, where the companies are clearly established but can still be under the radar. We also can get a lot more bang for the buck in companies that size from the initiatives we see adding value. In my experience, it’s harder for a $30 billion company to add $10 billion in value than it is for a $3 billion company to add $1 billion in value. We’ve bought bigger companies in the past, but I can’t say we’ve been very good at it. It’s just too hard to have an informational edge.