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A Note From The Portfolio Manager

We have habitually re-counseled clients (and ourselves) that financial markets go down as well as up and that is actually a good thing as we get to “replenish the well” in periods of distress. Thus we generally do not think […]

Supporting Charts – 1st Quarter 2016

CLICK HERE to download our supporting charts for going forward in 2016.

CSC Strategy Letter | Number 23 | Waves in an Ocean of Guesses

CLICK HERE to download Cove Street Capital’s January 2015 Strategy Letter Number 23, “Waves in an Ocean of Guesses”

Pretty Shareholders

As we clean out files and thoughts at year-end, this was a doozy that I think is an interesting view of “shareholder relations” and how badly it can be handled. We simply want to be treated as actual or prospective […]

The Most Important Thing

This remains one of my favorite pieces of self-analysis on not only “how to invest” but how to practically invest and conduct one’s self in the business of managing other people’s money. I read it every year around this time.

The Right Way to Think About It

Warren Buffett: Annual Letter Comments Regarding the Selection of Corporate Directors Berkshire Hathaway 2003 Annual Report: Pages 9-10 (bold added): True independence – meaning the willingness to challenge a forceful CEO when something is wrong or foolish – is an […]

Yes, We Have Written a Letter to the SEC

CLICK HERE to download our recent letter to the SEC.

The Dismal Science

Click HERE to download Is Economics Research Replicable? Sixty Published Papers from Thirteen Journals Say “Usually Not.”

Grinnell College

There is a lot of money in the world and there are often fascinating stories behind it. This is a great story and what also makes it great is what a pertinent lesson it is for “some people” to understand […]

A New Beginning

Forestar Announces CEO Transition, Management Promotions and Board Retirements  ************************  September 28, 2015 06:45 AM Eastern Daylight Time AUSTIN, Texas–(BUSINESS WIRE)–Forestar Group Inc. (NYSE: FOR) today announced that James M. DeCosmo, President and Chief Executive Officer, stepped down September 25, […]

Right On…181 Years Later

William Leggett, a Jacksonian Democrat and abolitionist, writing in the New York Evening Post, Nov. 21, 1834: “Whenever a Government assumes the power of discriminating between the different classes of the community, it becomes, in effect, the arbiter of their […]

CSC Strategy Letter | Number 22 | Paleo Investing

CLICK HERE to download Cove Street Capital’s September 2015 Strategy Letter Number 22, “Paleo Investing”

Mini Book Review and Thoughts | “Minding the Markets: An Emotional Finance View of Financial Stability” — David Tuckett

I will ignore the somewhat silly premise of the book which was to analyze the emotional nature of “money managers” and thus glean some clues as to how to prevent future financial crashes. But I would note the following: If […]

If You Lacked a Reason to Hate Proxy Advisory Firms Before Today, Here is the Last Straw

Related: Plus ça Change, Plus C’est La Même Chose.; The Fire is Burning Leading Proxy Advisory Firms ISS and Glass Lewis Recommend OM Group Stockholders Vote “FOR” the Merger Transaction with Apollo Affiliated Funds in Partnership with Platform Specialty Products […]

Investment Management is Not a Drinking Game

Aside from a mayonnaise issue, one of the largest pet peeves here is the following: focusing one’s time on finding interesting businesses and values first and then considering some macro considerations next is known as “Bottom-up” investing. It is NOT […]

The Investment World Under Hillary Clinton: Part I

This is certainly our favorite exchange this quarter in the ongoing dialogue between management and shareholders at Richardson Electronics (RELL). The pertinent facts you need to know here are that there is an “A-B” structure that keeps voting control with […]

What Truly Matters is Finding the Right Partners

There is a very real temptation to think someone else is smart based upon the premise that they say things with which you completely agree. Here is a perfect example. Now let’s put this interview into reality. We have met […]

Capital Allocation 101

Sadly, most CEOs don’t read this. They should.

Do We Think This Country Would Be Better Off with More Jaime Dimons or Elizabeth Warrens?

Quotation of the Day: “The problem for these guys is that I fully understand the system and I understand how they make their money. And that’s what they don’t like about me.” —Senator Elizabeth Warren, responding to criticism from Jamie […]

Another Sign of These ‘Loose’ Times

We’ve witnessed many weird and fascinating things in these six years of zero interest rates and quantitative easing but nothing that we’ve seen has personified the looseness of monetary policy like what was uttered on RCI Hospitality’s second quarter call. […]

Tweedy Browne’s Characteristics of Successful Investing

A nice reminder for all of us…since it can seem easy to forget when one lives in a world seemingly full of unicorns.

Very Relevant Thoughts for CSC – Culled from “The Rediscovered Benjamin Graham”

“I don’t believe any of us have the pretension of believing that by being very good analysts, or by going through very elaborate computations, we can be pretty sure of the correctness of our results. The only thing that we […]

Value Investing: Fact and Fiction

“I came, I saw, I purchased at a low multiple” …from Graham to Asness it still works. CLICK HERE to read more.

Active Share is Overrated — Just Be Right!

Investing other people’s money for a fee is fiendishly simple—just avoid being terribly wrong. This applies to widely diversified or concentrated portfolios. Read on.

Blast from the Past

A few thousand years ago, a friend of the CSC lead PM was a good friend of Jim Cramer who was starting this “online thing” back in the late 1990’s. Was there room for someone writing about value? It was […]

CSC Strategy Letter | Number 21 | Three Anecdotes Don’t Make a Data

CLICK HERE to download Cove Street Capital’s July 2015 Strategy Letter Number 21, “Three Anecdotes Don’t Make a Data”

The Fire is Burning – OM Group Continued

Related: Plus ça Change, Plus C’est La Même Chose. ************************ The following is a letter by Wynnefield Capital Management to fellow shareholders of OM Group (OMG), released June 11, 2015: ************************ Wynnefield Capital Management, LLC 450 7th Avenue, Suite 509 […]

Plus ça Change, Plus C’est La Même Chose.

(Translation: Another Weasel-like Deal Where Public Shareholders are Sold-Out.) The topic for today is the deal announcement on May 31st that the OM Group (NYSE: OMG) decided to sell itself to the private equity firm Apollo Group for $34 a […]

The opinions expressed herein are those of Cove Street Capital and are subject to change without notice. Past performance is not a guarantee or indicator of future results. You should not consider the information in this blog a recommendation to buy or sell any particular security. These securities may not be in your account by the time you receive this report, or may have been repurchased for your account. You should not assume that any of the securities discussed in this report are or will be profitable, or that recommendations we make in the future will be profitable or equal the performance of the securities listed in this report. Recommendations made for the last twelve months are available upon request. Cove Street Capital is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and expenses before investing.