Cove Street Capital
The site is rich. I recommend that you spend time in exploring the following offerings: strategy letter, thoughts, and recommended reading. In contrast to many sites which offer large shoals of readings, the folks at Cove Street, focus on a few select fish of real value.
The most recent entry for the strategy letter has an excellent commentary on Prem Watsa. I have invested in Fairfax Financial for three reasons:
- the quality of management: Watsa is a consummate investor of the first order
- Fairfax has an enviable track record over the long term, especially during "hard times"
- my sense is that the company will outperform other members of the fleet in the event of a market downturn and that by owning it, I will have some protection against downside risk
FFH has been added to the Financial Log Book. As usual, I will leave it up to readers to undertake their own financial due diligence.
Watsa letter to shareholders
Here's a very compelling entry in the recommended reading section of the Cove Street Capital site:
http://covestreetcapital.com/Blog/wp-content/uploads/2012/10/Small-Slam-Article.pdf
Charles Ellis contends that it's best to focus and limit one's holdings to a select few. Why? It's one of the best strategies to deal with the element of risk. Read the article to learn more. A great read.
In order to access Cove Street Capital's quarterly newsletters, click twice on the "Mutual Funds" title on the site's navigation bar. I really like management's openness in discussing both its successes and failures. The commentary is concise, and direct and well worth pondering.
I learned about Cove Street Capital as a result of subscribing to a weekly e-mail from the Stingy Investor which is written by Norman Rothery. I've followed him for many years and for a good reason: he has a fine mind and consistently offers a wealth of ideas which can knock you out of the rut of routine thinking. Visit him here: http://www.ndir.com
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