By Marc Robins

When investing in MicroCap equities, several factors are at the top of the list as to importance regarding warning posts, priorities, missions and objectives as well as the ever-important numerous characteristics.  For those with scars of a long-time professional, success, we’ve learned, requires that the quality and caliber of management is paramount.

Bill Hambrecht, of the venerable technology brokerage firm bearing his name, and I had a heated discussion about this topic in 1994.  He believed that exciting and expanding industries and the ‘take-off’ of new secular trends ranked highest and even above management. I countered that that those attributes were necessary but management still topped the scale: My logic arose from the idea that savvy investors wouldn’t necessarily seek-out dying trades or bet in the face of collapsing macro-economic events and then look for individual “plays” within those maelstroms.  That either they would consider companies or industries experiencing cyclical “bumps in the road” or entities transitioning from one technology or specialty to another but still the ultimate success would hinge on management’s ability to lead, envision the best and most appropriate strategies and pathway alternatives, and inspire the most dedication and output from employees.  Anyway strong macro-trends should be a top-ranked item and laid as foundations for building one’s portfolio.)   Bill then went on and tried to “steal” a majority position in my firm….there were more than a few things we didn’t agree on.  But his advice and friendship was always a plus. Read More …