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CSC Strategy Letter | Number 19 | The Great Complacency…Continued

DownloadCove Street Capital’s January 2015 Strategy Letter Number 19, “The Great Complacency…Continued”

The Reluctant Warriors

A friend of ours who works for a well-known activist firm summed it up perfectly when he said, “We are living in the era of the activist halo.” From 300-page PowerPoint presentations to incredible revelations about the amount of salt […]

Reading Disorder

A senior member of our investment team read this transcript and couldn’t help but replace the words “investment management” in lieu of the subject being discussed. Worth reading and thinking about.

What a Phony, Part II

Click here for Part I: The Worst Piece of Corporate BS, 2/11/2013 A recent article in the Wall Street Journal penned by Michael Dell is so full of self-serving garbage it is difficult to know where to start. (Click here to go […]

Does This Make it Impossible for a Value Investor to Have a Beard?

CLICK HERE to download “The hipster effect: When anticonformists all look the same” by Jonathan Touboul

All That is Necessary for the Triumph of Incompetence is That Good Men Do Nothing

This is a very nicely done and thoughtful piece about a topic that every serious long term shareholder eventually faces despite best intentions. CLICK HERE to download PDF

CSC Strategy Letter | Number 18 | Metastability?

Download Cove Street Capital’s September 2014 Strategy Letter Number 18, “Metastability”

Buyback BS

Of the myriad of reasons proffered daily as to why we are the verge of stock market doom, a “decline in share repurchase” has come up a lot. We would note the following: As the below chart suggests, shares outstanding […]

Let’s Picket for Better Global Sewage

Politics aside, we are regularly asked by large institutional clients, “How is Climate Change affecting the way you invest?” Our short and practical answer is “It doesn’t.” This piece by longtime favorite economic and environmental thinker Bjorn Lomborg is a […]

Leading Candidate for Worst Sell Side Piece in 2014

In regard to Tesla… Having defended our more cautious stance for over a year, we find ourselves torn in upgrading as it is clear substantial risks remain. This is, in part, given (1) the lack of available data to question […]

Quarterly Earnings: Our Sentiments Exactly!

by Ben Claremon | Research Analyst As long term-focused investors, we have a certain disdain for the quarterly earnings rigmarole and the associated maniacal focus on “beating” what are somewhat irrelevant earnings per share estimates. The truth of the matter […]

CSC Strategy Letter | Number 17 | Hockey is Nothing Like Investing

DownloadCove Street Capital’s July 2014 Strategy Letter Number 17, “Hockey is Nothing Like Investing”

Very Scary

Our takeaway on this speech is three-fold: We paraphrase: “Wise regulation, which is mostly now in place globally, will ensure that future financial crises will not billow out of control.” Wow, I didn’t realize that until 2010 the world didn’t […]

More Corporate Governance Weirdness

The “Entertainment Business” is well known for having a callous disregard for other people’s money. The origins of Live Nation (LYV) and some of the Board principals involved—current and former—include some of the more egregious examples we’ve seen in our […]

If Invited, I Shall Serve — A Rock and Roll Update

by Jeff Bronchick | Chief Investment Officer Fender tried to go public in 2012. It failed and here is why. In how the world should work, the prevailing private equity investors bit the bullet and raised new capital at levels […]

Social Media Lets Us Pretend to Know Something About Everything

by Jeffrey Bronchick | Chief Investment Officer Read this article from the New York Times and replace many of the nouns with “investor,” “stock,” and “investment industry.” Long before social media, Wall Street and its predecessors had a wildly viral network […]

Reading List – The Classics

_________________________________________________ Recently added: Conservative Investors Sleep Well – Philip A. Fisher Good Strategy Bad Strategy: The Difference and Why It Matters – Richard Rumelt Organizational Intelligence: Knowledge and Policy in Government and Industry – Harold L. Wilensky _________________________________________________

Buffett vs. Icahn on Coca Cola? Slam dunk for Icahn.

by Jeff Bronchick and Ben Claremon We have been thinking about this issue for a few weeks, tempering our urge to dash out some heated thoughts of the moment. We have gotten over it. Ignoring for a moment the details […]

A Word From Our Trader

by Matt Weber |  Director of Trading + Operations There is more to life than increasing its speed. -Mahatma Gandhi Even though we are “investors,” we are very aware of the High Frequency Trading (HFT) issues that emerge on our […]

Why We Continue to Think the ISS Approach Toward Corporate Governance and Executive Pay is Moronic

CLICK HERE _________________________________________________ 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. Consider the investment objectives, risks, and expenses before investing. You […]

CSC Strategy Letter | Number 16 | What Would You Do if You Were Prem Watsa?

Download Cove Street Capital’s March 2014 Strategy Letter Number 16, “What Would You Do if You Were Prem Watsa?”

More Thoughts for the January 2014 Strategy Letter

Here are some thoughts that didn’t make it into our January Strategy Letter but that I wanted to clean off the plate for the New Year: • Becoming a celebrity investor as a result of being a serial presenter on […]

CSC Strategy Letter | Number 15 | The Fear Pendulum: From End of the World to Market Melt-Up?

Download Cove Street Capital’s January 2014 Strategy Letter Number 15, “The Fear Pendulum: From End of the World to Market Melt-Up?”

The Soft Stuff

Every December, the Cove Street Capital team spends both time and money on behalf of a charity. This year we spent an afternoon at the Alexandria House, a transitional residence providing safe and supportive housing for women and children in […]

CSC Strategy Letter | Number 14 | Steve Jobs Didn’t Give a *!@% About the Debt Ceiling

Download Cove Street Capital’s October 2013 Strategy Letter Number 14, “Steve Jobs Didn’t Give a *!@% About the Debt Ceiling”

CSC Strategy Letter | Number 13 | Who Are You Going to Believe—These Non-GAAP Numbers or Your Lying Eyes?

Download Cove Street Capital’s August 2013 Strategy Letter Number 13, “Who Are You Going to Believe—These Non-GAAP Numbers or Your Lying Eyes?”

Holiday Reading – Dundee Annual Report

I am not sure I am 100% in alignment with “Gold is the Answer” but this ramble is worth reading on a number of fronts from a guy who has put up a terrific record and doesn’t get a lot […]

Attention Almost Every Public Company with an A/B Ownership Structure: How to Create 35% More Shareholder Value in a Single Day and Set a Course for Further Gains

(Reprint) RICHMOND, Va., June 6, 2013 /PRNewswire/ — Media General, Inc. (NYSE: MEG) and privately held New Young Broadcasting Holding Co., Inc., both local broadcast television and digital media companies, today announced a definitive agreement to combine the two companies […]

CSC Strategy Letter | Number 12 | Harleys and Leather Jackets

Download Cove Street Capital’s May 2013 Strategy Letter Number 12, “Harleys and Leather Jackets”

The Efficient Market Paradox

by Eugene Robin  |  Research Analyst, Cove Street Capital I’d like to share with you a great book on the basic mathematics of the stock market written by John Allen Paulos that has a section on the efficient market. Briefly, 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.