"With a micro-cap company, how you spend your research time gets turned upside-down. Unlike with large cap companies, for which historical financial performance is a window to the future, non-financial information holds much more value when looking at a micro-cap stock. You should spend 80% of your effort on understanding the company's business strategy and business model, ensuring the management team is the right one to pull it off, making certain the industry in which the company operates is sizable and growing, and judging how or whether it is better than its competitors. You should spend only 20% of your time looking at current financial results."
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