Public Equities
Reid Green & Co invests in publicly traded securities in businesses that possess or are developing competitive advantages, have profitable growth prospects when they are available at attractive valuations.
We invest on a global basis, focusing on the United Kingdom, North America, Europe, Australia, Japan and Hong Kong. Our focus is on microcap stocks
We believe the best investments are where the business has a powerful market opportunity. Then industry and business dynamics converts opportunity into excellent economics and then management capital allocation converts those economics into high shareholder returns.
In addition to this Opportunity to Return conversion our over rising filters are:
1. Prospects for high Revenue Growth
2. Stable costs leading to Margin Expansion
3. Combination of above to cause Multiple Expansion
Investment Criteria
- Understanding:Do we understand the key variables enough to handicap risks and outcomes?
- Quality Economics: Does the business possess both high returns on capital and competitive advantage?
- Scalability: Is there a large opportunity to scale profitably?
- Management Motive: does management have the ability, motive, and incentive to increase intrinsic value?
- Attractive Valuation: Does the current price meet our IRR hurdles?
Other factors.
The full list of specifics characteristics we look for are a part of our proprietary checklist and constitute the cause of revenue, margin and multiple expansion. Some of the factors range from, high gross margins times by operating leverage, data feedback loops, value migration, network effects, terms of trade and switching costs caused by product ecosystems.