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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. _______________________________________________________________________ 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 […]

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 […]

CSC Strategy Letter | Number 28 | Hooey and the Sausage Making

Download Cove Street Capital’s March 2017 Strategy Letter Number 28, “Hooey and the Sausage Making”

The Annual Kabuki Dance of Executive Compensation in Corporate America

To paraphrase Einstein, things should be as simple as possible, but not too simple. From that starting point, good investing at Cove Street Capital begins with analysis of business model, security valuation, and an assessment of the people running the […]

And The Survey Says…

by Eugene Robin | Principal, Research Analyst The so-called “Trump Rally” has been fascinating to watch from our vantage point. For one thing, it has made us look stupid in comparison to the benchmark we are most often compared against […]

From the Archive – A Relative Value Trade that Paid Off

Strings Attached — a 2007 write-up of the vintage-guitar market. ‘Gits in Yer’ 401k — 2006 commentary on vintage guitars as a long-term investment.

Fact-Filled Party Pooping

John Hussman is an economist who runs some mutual funds. He has been bearish and miserably wrong for a long time, but he is thoughtful and presents legitimate data. This is a decent summary of the other side of post […]

Amos Tversky — An Amazing Man

Per the very readable new book by Michael Lewis, “The Undoing Project,” Amos Tversky kept these thoughts on a piece of paper by his desk. They are now on mine. People predict by making up stories. People predict very little […]

More Notes from the CSC Underground

by Ben Claremon, Principal and Research Analyst Before you start rolling your eyes, this is not what you might think it is. Sorry, you aren’t going to get any insightful political commentary from us. We are not spending any time […]

Jeffrey Bronchick at the Miami Behavioral Finance Conference

Download the presentation slides. _____________________________________________________________________ The opinions expressed herein are those of Cove Street Capital, LLC and are subject to change without notice. Past performance is not a guarantee or indicator of future results. Consider the investment objectives, risks, and […]

Here is an Area Ripe for Change Under Newco

Download a detailed analysis of how a government agency can go completely off the rails of rationality. And it’s probably worse than we think.

CSC Strategy Letter | Number 27 | Some Things Really Do Change

Download Cove Street Capital’s November 2016 Strategy Letter Number 27, “Some Things Really Do Change”

The Right Questions

by Dean Pagonis | CSC Research Analyst As the newest member of the Cove Street research team, I have generally been shielded from most ongoing client adventures. However, (for reasons that have always been clear to me!), I have been […]

Our Current Thinking

While we simply HATE to do things that seem to contribute 90% to the din of noise that surrounds investing, this was put in our current client presentation.

While Our Five Year Numbers Are Pretty Good…They Won’t Always Be.

From a New York Times interview with Davis Swenson, head of Yale endowment: Mr. Swensen likes teaming up to invest with his former analysts. For one thing, it can reduce the risk of panicky withdrawals. “We were talking to a […]

No Matter How Bad You Think it is in Washington…It’s Worse Than You Think

From Fortune: Senators Call the Wrong Time Warner CEO to Testify about the AT&T Merger You may have heard about the controversial $85.4 billion merger between cable provider Time Warner twx and telecom giant AT&T. U.S. lawmakers have heard about […]

Larry Summers: Eat This!

This is simply a devastatingly effective argument that has never been read in Washington DC and is what we fear in the middle of the night. It also has a non-zero probability of being right.

Nothing Further, Sir

Check out this video on YouTube: Garrett Rips Secretary Lew For Not Playing by the Same Rules as the Rest of Us

CSC Strategy Letter | Number 26 | Dow 36,000…and the Grumbling Hive

Download Cove Street Capital’s September 2016 Strategy Letter Number 26, “Dow 36,000…and the Grumbling Hive”

Headline Versus Reality

Now, one would think that statements like “More small caps reducing shares, paying dividends” would seem to the investor at large to be a good thing. After all, how can more people thinking about how to allocate capital in a […]

Another Demerit for Corporate Governance and A-B Share Classes (Formerly “Why Doesn’t the CSC PM Learn His Lesson?”)

Press Release Cove Street Capital, LLC and Other Shareholders Resoundingly Rebuke Westell Technologies, Inc. Board of Directors and Strategic Direction EL SEGUNDO, CA, September 22, 2016 – At the annual shareholders meeting of Westell Technologies, Inc. on September 13th, 2016, […]

Wash, Rinse, Repeat

From the 2016 Liberty Media Annual Report Dear Fellow Shareholders, The past twelve months have seen the continued structural evolution of Liberty Media. Most notably, in April of this year, we recapitalized Liberty Media Corporation into three tracking stock groups, […]

And the Vending Machine Selling Cheetos is Completely Empty

From the Quanex Building Products Presentation on June 9th, 2016 Question (Unknown analyst): So for a number of the manufacturers, particularly in the window side, it seems that the surge in housing activity in ’13 and then the subsequent drop-off […]