Shareholders often ultimately judge company managements by how well they generate returns on capital. For example, two companies may generate net income of $2 million, but if one required $10 million of shareholder capital to do...
Read MoreAudiovox (VOXX) has a pretty poor earnings record since new management took over in 2005. Returns on capital have been consistently negative or in the low single-digits. As a result, the stock is pretty cheap on an asset basis;...
Read MoreDiligent investors spend the time and effort required to vote their proxies responsibly. But when it comes to electing directors, the game is rigged against the shareholders: even when the majority of voting shareholders votes...
Read MoreUsually, value investors will want to invest alongside management. If management has skin in the game, the thinking goes, their interests will be aligned with those of the remaining shareholders. But it doesn’t always work...
Read MoreMartin Whitman founded Third Avenue Value Fund some twenty years ago. Over that time period, the fund has beaten the returns of the S&P 500 by several points annually. In The Aggressive Conservative Investor, Whitman...
Read MoreMartin Whitman founded Third Avenue Value Fund some twenty years ago. Over that time period, the fund has beaten the returns of the S&P 500 by several points annually. In The Aggressive Conservative Investor, Whitman...
Read MoreInvestors spend a lot of time trying to determine a company’s future earnings. For stable companies in mature industries, the best clue to future earnings is often the earnings record of the past. But past earnings records...
Read MoreIn a previous post, we discussed the potential pitfalls of investing in companies with poor corporate governance structures. But how can an investor protect himself? There are two basic ways. First of all, the investor can...
Read MoreTurnarounds can be a great source of returns for investors. When the market counts a company out, its shares can trade at extremely low levels, allowing investors the opportunity for tremendous upside potential. The shares may...
Read MoreThe mainstream finance industry defines a company’s riskiness by its stock price’s volatility. For value investors, there is no such short cut; a company’s riskiness is defined by a slew of factors that can...
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