CLICK HERE to receive exclusive commentary, Strategy Letters and CSC news straight to your email inbox
At Cove Street we are constantly weighing three key variables: business, value, and people. In the case of Belmond Ltd., we are confident in the company’s value and the underlying hotel business. However—and it’s a big however—there is a problem […]
The following is a pretty accurate assessment of what is going in the US economy – we think. “—MSC Industrial Direct Q3 Earnings Call — July 6, 2016— I’ll get started with current market conditions and our fiscal third quarter […]
This Is Painful But Try THIS Pain on for Size – 14 Years in a Row of Net Outflows Which Leaves 15,000 to Go Under Current Consensus Thinking
Download Cove Street Capital’s July 2016 Strategy Letter Number 25, “T.I.N.A. Will Be a Cruel Mistress”
This was a letter recently released by U.S. Senator Elizabeth Warren (D-MA) and U.S. Representative John Conyers (D-MI) and was signed by 116 Members of the House of Representatives and 11 senators. Doing counterproductive things to destabilize global economics and […]
by Ben Claremon | Principal, Research Analyst After taking a year off from partaking in the annual trek to Omaha, I returned to the home of The Oracle looking to be re-invigorated. There is so much noise and nonsense that […]
Download Cove Street Capital’s April 2016 Strategy Letter Number 24, “Living in an Economics-Free Zone”
From a recent interview with Bill Gross, manager of the Janus Global Unconstrained Bond fund: Years of easing by central banks mean that interest rates in most of the developed world will fluctuate narrowly. That offers an opportunity to sell […]
From the March 2, 2016 Wall Street Journal: Some traders go short. Others go long. Paul Singer went really, really long. His trade, which is transfixing Wall Street this week, has been one of the most drawn-out and contentious bond-market […]
One of the reasons why Buffett remains important to us is the increasing frequency at which he echoes our own thoughts: I suggest that you ignore a portion of GAAP amortization costs. But it is with some trepidation that I […]
Our man, Dean Pagonis, visited Sun Hydraulics last week under the heading of “How Does This Really Work?” Here is what they told us about “what [they] don’t do.” We like it, but we like it at a lower price. […]
While parts of this wander from what we do day to day, I think it can be argued that it is difficult to divorce these issues from investing in today’s world.
We ran across Hodak Value as we were reading a proxy that detailed managers not getting paid a bonus because they didn’t hit a target that looked to us as very cleverly designed. You rarely see either—bonuses not being earned […]
Properly speaking, there are only three reasons why someone should allocate capital to a money manager: 1. New funding or capital inflows. 2. An existing partner whose strategy makes intellectual sense has developed legitimate “people problems”—as in defection, death or […]
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 […]
CLICK HERE to download our supporting charts for going forward in 2016.
Download Cove Street Capital’s January 2016 Strategy Letter Number 23, “Waves in an Ocean of Guesses”
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 […]
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.
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 […]
Click HERE to download Is Economics Research Replicable? Sixty Published Papers from Thirteen Journals Say “Usually Not.”
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 […]
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, […]
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 […]
Download Cove Street Capital’s September 2015 Strategy Letter Number 22, “Paleo Investing”
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 […]
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.