Imagine a business that grew its book value per share by roughly 24% last year, earns a 30% return on equity, buys back its own stock by the truckload, and just mailed shareholders a $2 special dividend on top of it all. Now imagine the market hands you that business
Imagine a business that earns a ~12% return on equity, sells for less than the cash-and-bonds value of its own balance sheet (about 0.9x book, roughly 8% below book value), trades at a P/E of 8, and spends its spare change repurchasing its own stock only when it&
Because it purchased every stock when it becomes large (for only 0.01% position) and held on to it forever. Very few people purchased Nvidia in 2001 despite dotcom bubble and never bought or sold any shares. The so-called "rebalance" doesn't really buy any existing shares
A London-listed insurance private equity firm trades at £240M market cap against £350M book value — a 31% discount to NAV. The same NAV has compounded at 18.5% per year for the last nine years (11% per year since 2005). Of 23 current investments, exactly one is marked below cost.
A federally-chartered savings bank in the American Midwest carries $39M of book value, sits on roughly $20M of excess capital above what regulators require, and trades at a $24M market cap. The math, before we even get to the buybacks, is $0.62 on the dollar of book — and management
To my limited partners: The S&P 500 index went up 16.39% (17.54% with dividends) in 2025, ending the year with another all-time high just like 2024. The bull market run from 2023 seems unstoppable, an easy 78% gain in three years just by holding the index,
The fundamental reason for an asset to have value is in its ability to produce future cash returns to its shareholders, and its price movement also reflects the change of this ability. For example, W. W. Grainger has an incredible history of 54 years of increasing dividends since its listing