logo

Welcome to our “Thoughts”

to receive exclusive commentary, Strategy Letters and CSC news straight to your email inbox

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 Annual Pilgrimage to Omaha

Berkshire This past weekend’s trek to Omaha for the Berkshire Hathaway annual meeting represented the fifth consecutive time I have ventured to see the Oracle of Omaha and the man they call Charlie share their wisdom. Sorry folks, I didn’t […]

Tessera: Our Vote is In

Our premise is simple: we bought Tessera because the stock was cheap and we received nearly free optionality on either the development of a new technology or improvement in the managing of the core business.  In a very short period […]

Ben Claremon and the Great White North

Under normal circumstances, the prospect of leaving sunny Southern California to travel to a place where the day-time temperature encourages the wearing of fur is not particularly appealing. But I decided this year to make the slog to attend Fairfax […]

CSC Strategy Letter | Number 11 | Call Him Ishmael

Download Cove Street Capital’s March 2013 Strategy Letter Number 11, “Call Him Ishmael”

Proxy Season and the Unusually Juicy Soap Opera at Tessera

We own Tessera at a cost of approximately $16 per share. Our thought process was simple: a conservative analysis of their IP portfolio’s current cash stream plus cash on the balance sheet suggested a valuation of $15 per share, leaving […]

Hello Ruby Tuesday

A few weeks ago, Cove Street was asked to present a small cap stock idea for the 2013 Small-Cap Investing Summit. Our analyst Ben Claremon chose to discuss the investment thesis for Ruby Tuesday (RT) and created the attached presentation. Despite […]

The Worst Piece of Corporate BS

The proposed management buyout of Dell is an abomination of corporate governance and decency on an extraordinarily large scale. While we have been too busy losing money in Hewlett-Packard to own Dell shares, I will take the liberty of being […]

CSC Strategy Letter | Number 10 | The Lost Decade…Found?

Download Cove Street Capital’s January 2013 Strategy Letter Number 10, “The Lost Decade…Found?”

What Were We Thinking—Central Garden and Pet

Central Garden and Pet (CENTA) has been in and out of the portfolio several times over the last eleven years with results varying from stunning (a 6-bagger from the 2002 lows) to a lot less than that (repurchased the stock […]

The Nonsense Math Effect

Please insert the phrases “money manager,” “hedge fund,” “large pension plan,” and “underperformance” at will throughout this piece.  The Nonsense Math Effect  Mathematics is a fundamental tool of research. Although potentially applicable in every discipline, the amount of training in […]

Our Roots For Sale

Warren Buffett: Former Executive Offices – 97 Cove St, New Bedford MA 02744

CSC Strategy Letter | Number 9 | Idiosyncratic Risk…and the Other Kind

Download Cove Street Capital’s November 2012 Strategy Letter Number 9, “Idiosyncratic Risk…and the Other Kind”

Increasingly Obvious Unintended Consequences

While we prefer not to opine in a macro-economic sense on most occasions, THIS PIECE sourced from Grant’s, nicely sums up thoughts expressed in a number of our strategy letters. Artificially depressed interest rates are killing us.

Jefferies: Possible Postscript

Funny things often happen on the way to the bank. It is also fair to say that sometimes you never reach the bank, or you end up taking a cab when you thought you were walking. Where this fits with […]

Well Worn and Well Worth Re-reading

We have embarked on a longer term project to digitize about 6 yards and 28 years of collected investment “literature.” Because this is the age of social media, we will share the more timeless pieces. Pardon their appearance. 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. 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.