Our Core Strategy invests primarily in two types of equities, which we refer to as “Generals” and “Special Situations”: 


Generally undervalued securities where we have nothing to say about corporate policies and no timetable as to when the undervaluation may correct itself. Sometimes these work out very fast; many times they take years. It is difficult at the time of purchase to know any compelling reason why they should appreciate in price. However, because of this lack of glamour or anything pending which might create immediate favorable market action, they are available at very cheap prices. A lot of value can be obtained for the price paid. This substantial excess of value creates a comfortable margin of safety in each transaction. Combining this individual margin of safety with a diversity of commitments creates a most attractive package of safety and appreciation potential.

Special Situations

Securities whose financial results depend on corporate action rather than supply and demand factors created by buyers and sellers of securities. In other words, they are securities with a timetable where we can predict, within reasonable error limits, when we will get how much and what might upset the applecart. Corporate events such as a consolidation, liquidation, proxy contest, spinoff, bankruptcy, death of a control person, large share repurchase or litigation lead to special situations.

Within the above categories, we narrow our focus to emphasize what we refer to as “Cloning”, “Cannibals” and “Spinoffs”: 


These are companies that are owned by one or more “Super Investors,” which consist of a limited number of investors who have been able to provide above average investment returns over a long timeframe.


These are companies that have effected a significant net reduction in shares outstanding, or are expected to significantly reduce shares outstanding.


These are companies that have been involved in a spinoff transaction, which occurs when a company takes a subsidiary, division, or part of its business and separates it from the parent company by creating a new, independent company.