Small Caps' Big Gains

Q: Since small cap is often considered a growth area, how do you make your distinction between growth and value?

A: First of all, we must feel that it's a value stock, but we look for the highest growth in terms of value by sector. The best way of looking at our portfolio is that we have companies that are significantly more profitable, as measured by return on capital, yet sell at a discount based on enterprise value by sector. We're not looking for deep value, we just want good companies that are reasonably priced.

Toyota's Hydrogen Man
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