I am a long-term investor that looks for misunderstood companies whose shares are trading at a discount to their intrinsic value. I believe in looking for companies in areas where there has been indiscriminate selling without regard to the fundamentals of the security (e.g., spinoffs, merger securities, index reconstitutions). I also focus on finding opportunities in areas of the market that leave a bad taste in most investors’ mouths (e.g., OTC stocks, micro-caps, nano-caps). At the end of the day, a business is a business. Liquidity, or lack thereof, can be the friend of the investor who holds for the long-term.
I only invest in companies where the reason for undervaluation is sound (e.g., the market is missing or overlooking something) and where there is a clear catalyst in the future that will correct the inherent mispricing.
My portfolio is extremely concentrated, as I only invest in companies where my conviction is highest. The only way to get high conviction is by doing the work yourself. Do your own due diligence before making any investment decisions.