Download a recent speech by noted Soros “sidekick” Stanley Druckenmiller
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by Eugene Robin | Research Analyst The magnitude of the recent price decline caught many of “us” off guard and caused many (including Cove Street) to re-think our notion of what constitutes a sustainable oil price. Here, we analyze the […]
From time to time I have embarrassing moments, like admitting I have read L.J. Rittenhouse’s book, “Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications.” This was a fairly simplistic read on a 2 hour flight […]
by Dean Pagonis | Research Analyst We think you might have noticed the dollar has been appreciating versus most currencies. (Have you heard the one about the Canadian Peso?) Source: New York Times, 2015 So yes, there is a negative […]
This report remains the single most coherent and consistently negative argument against…a lot of things we do.
Mr. Gideon King’s parting notes on his decision to close down his hedge fund business: “Controlling capital and engaging intellectually is good work if one can get it. The business, on the other hand, has changed dramatically. As the endless […]
From time to time we must look in the investment mirror and conclude that we are stinking and we have no one to blame but ourselves. This is an interesting piece that academically exposes a lot of the other times.
Download Cove Street Capital’s January 2015 Strategy Letter Number 19, “The Great Complacency…Continued”
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 […]
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.
Read Part I: “The Worst Piece of Corporate BS,” 02/11/2013 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. What is clear in most […]
“The hipster effect: When anticonformists all look the same” by Jonathan Touboul
This is a very nicely done and thoughtful piece about a topic that every serious, long-term shareholder eventually faces, despite best intentions.
Download Cove Street Capital’s September 2014 Strategy Letter Number 18, “Metastability”
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 […]
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 […]
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 […]
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 is […]
Download Cove Street Capital’s July 2014 Strategy Letter Number 17, “Hockey is Nothing Like Investing”
Our takeaway on Janet Yellen’s 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 […]
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 […]
by Jeffrey 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 […]
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 […]
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 Beyond Greed and Fear: […]
by Jeffrey 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 […]
There is more to life than increasing its speed. –Mahatma Gandhi by Matthew Weber | Director of Trading + Operations Even though we are “investors,” we are very aware of the High Frequency Trading (HFT) issues that emerge on our […]
Alleghany Corp’s 14A — This report is published for information purposes only. You should not consider the information a recommendation to buy or sell any particular security, and this should not be considered as investment advice of any kind. The […]
Download Cove Street Capital’s March 2014 Strategy Letter Number 16, “What Would You Do if You Were Prem Watsa?”
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 the […]
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.