Value, growth at reasonable price, small-cap, long-term horizon

R.G Barry: The Current Spread Between A Buyout Offer Provides Potential For A 'Home Run'

Still On The Table

Special situations investing is often an obscure and difficult to navigate area of the market. Not all special situations are created equal, and many must be approached with extreme caution. When it came to mergers, Ben Graham and Warren Buffett typically favored situations in which an agreement was already signed between the acquiring party and the acquisition target. Though I also favor situations where the ink is on the paper, the spreads are often narrow and the returns are typically mediocre from an annualized perspective.

Another type of special situation that I favor is buyout offers, particularly for small and microcap companies. While many buyout offers take time to complete, and there is the risk of...

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