Category : Weblog

Cove Street Capital: Team Update

— Download this post as a PDF — “Until one is committed, there is hesitancy, the chance to draw back. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and […]

Five signs of a really *functional* market?

From FT Alphaville, December 7, 2017: 1) The spread between the top three exchanges offering your product is no less than… $4,000. 2) The utility function of your “currency” product is compromised by a traffic jam of 193,211 transactions… 3) […]

Highlights From A Conversation with David Swenson

From a November 2017 Counsel on Foreign Relations interview by Co-Chairman Ermeritus Robert Rubin of David Swensen, CIO of Yale University. So for most of the 32 years that I’ve been at Yale, the standard assumption for endowment returns for […]

A Time-Tested Way to Lose Money

(Business Wire) — NEW YORK — November 17, 2017 Real Industry, Inc. (NASDAQ: RELY) (“Real Industry” or the “Company”) today announced that it has initiated restructuring efforts through the filing of a petition for voluntary Chapter 11 reorganization in the […]

Other Things on Our Mind That Didn’t Manage to Work Their Way Into a Coherent Pattern for Our October Strategy Letter

BITCOIN: J.P. Morgan boss Jamie Dimon: “It’s a fraud. It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed.” In the other Corner: Murray Stahl. And the following is just purely stupid: Usually when a […]

CSC Strategy Letter | Number 30 | Can You Walk Past the Doughnuts?

Download Cove Street Capital’s October 2017 Strategy Letter Number 30, “Can You Walk Past the Doughnuts?”

This Time is Really Not Different

— Download this post as a PDF — by Dean Pagonis | Research Analyst Intelligent investors can always come up with a slew of reasons for why the market is under/overvalued. We are always at the precipice of disaster or […]

At the Risk of Spending All Day Talking to Ourselves

Picking Stocks Is Hard. It’s Even Harder With Growth: Gadfly (Bloomberg Gadfly) — By Nir Kaissar Picking stocks is famously difficult. But just how difficult is one of the oldest arguments in finance. New York Times columnist Jeff Sommer reopened […]

Identifying the Next Bubble with Foresight—Not in Hindsight

by Ben Claremon | Principal and Research Analyst In recent letters we have pretty thoroughly discussed the ongoing industrywide move toward passive investment management strategies—and away from active management. But when we saw this thoughtful piece from Charles Brandes (a […]

Rinse, Lather, Repeat: Trian and P&G

Some universal ideas that are entirely relevant here.

Bullish or Bearish?

“Klarman’s Baupost Plans to Return Some Investor Money”– Bloomberg

Amazon 1998

Being gluttons for punishment, this is the entire Bezos collection. At least we haven’t been short. Reprinted from the 1998 Amazon Annual Report Work Hard, Have Fun, Make History It would be impossible to produce results in an environment as […]

Jeff Bezos’ 2016 Letter

While he is reigning terror on the rest of portfolio, these are thoughts we share from Jeff Bezos. First, never use a one-size-fits-all decision-making process. Many decisions are reversible, two-way doors. Those decisions can use a light-weight process. For those, […]

Satellite Potshots

— Download this post as a PDF — “Is there not A tongue in every star that talks with man, And wooes him to be wise? nor wooes in vain; This dead of midnight is the noon of thought, And […]

Other Recent CSC Thoughts and Ruminations That Did Not Fall Into a Coherent Narrative for Our June Strategy Letter

Risk—the extent of loss that a person or an organization can withstand without having to significantly change spending habits. THIS drives a lot more market activity than a Sharpe Ratio. The new Edward Thorp biography, “A Man for All Markets” […]

The Board of Extravagance

by Eugene Robin | Principal, Research Analyst Here at Cove Street, we often wonder: what would it be like to sit on a public company board? What do people actually do? How do board members defend the rights of the […]

CSC’s Women in Finance Program Welcomes Beatrice Woodruff

The Cove Street Capital Women in Finance Program—Summer Edition—welcomes Beatrice Woodruff to the team. After an intensive CFA week of training, and to paraphrase Vince Lombardi, she will receive the normal and customary beatings! Why am I here? — by […]

Tales From the Proxy…Cont’d.

By Jeffrey Bronchick, CFA | Principal, Portfolio Manager Colfax Corporation (Ticker: CFX) is a diversified industrial company whose present day life is cursed by the “next Danaher” label due to the presence of one Mitchell P. Rales, co-founder of both […]

And You Thought You Had Alternatives in the Portfolio

From the Grants Interest Rate Observer: P.P.S. To root out speculative excess, a periodic mission of the Beijing financial police, is easier said than done in a country with more than 1,000 exchanges (SunSirs, a research boutique that focuses on […]

The Beauty of No-Called Strikes, Permanent Capital, Patient Partners, and Motivated Owners

This was once our largest holding before it grew up on us. — 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 […]

This Dude Remains One of a Kind

Press Release National Beverage Corp. Continues To Refresh Via Shareholder Value + Healthy Beverages And MORE Cash! FORT LAUDERDALE, Fla.–(BUSINESS WIRE)– National Beverage Corp. (NASDAQ: FIZZ) today announced its eighth special cash dividend and released the following letter to shareholders […]

A Butterfly Beat Its Wings and…You Should Sign Up For This!

This was Cove Street Capital’s 2015 holiday book gift: From: Thomas N. Mahoney, CFA, CAIA, UBS Private Wealth Management To: Jeffrey Bronchick, CFA, Cove Street Capital Subject: CFALA Superforecasting challenge Dear Jeff: Thanks for sending me the book “Superforecasting” in […]

Notes From Proxy 2017 – Cont’d.

There are a number of highly successful companies that have corporate governance structures with several classes of stock. In many cases one of classes has essential voting control over all matters under the sun but not belonging to the heavens. […]

Disappearing Alpha

This is an interesting piece that essentially says, “by the time you have finished reading this, you will have have wasted your time reading this.” The “edge” has been dissipated, which certainly never stops anyone in the food chain of […]

Nice In Theory

We run separate accounts and a mutual fund, so we have 2 cents about Mr. Jason Zweig’s piece about the awful state of prospectus writing. That I actually have to think twice when I even mention the words mutual fund […]