Graham Theodor & Co. Annual Letter 2016

An otherwise uneventful, down year but one bearing REAL change.

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Top 5 Investing Myths

Some of the more traditional ways of investing for both capital preservation and compounding purposes, such as purchasing a local family business or buying into a far larger enterprise by way of a public stock exchange to provide a continuous stream of income for years or even decades to come, have unfortunately — to the detriment of investors everywhere — not been perpetuated to quite the same extent as some of the more fabled stories presented below.

As contributed to Canadian MoneySaver Magazine (requires subscription)

Love It, Hate It Or Indifferent, QC Holdings Is Cheap!

“Value investing is at its core the marriage of a contrarian streak and a calculator.”  – Seth Klarman

When pausing to think about what the absolute most hated things in the world are, things such as disease, corruption, and taxes are some of the items that may immediately come to mind. But down on this same list is also usually debt or usury of one form or another.

Given this stigma, payday lenders have almost always been reviled to a lesser or greater extent throughout their official history going back to the early 1980’s Depository Institutions Deregulation and Monetary Control Act which effectively overrode all existing state and local usury laws, giving way to the elimination of interest rate limits.

Thus it should come as little or no surprise that a small, Kansas City based payday lending company – QC Holdings Inc. (OTC: QCCO) was valued at a whopping 75% discount to its discounted net asset value as late as last month. While this gap has significantly closed recently, a buying opportunity still persists as shown if one reads on. Continue reading

Cool Value In Alaska: Northrim BanCorp, Inc.

  • Third largest bank in Alaska selling at a discount to book value and its peers.
  • Temporary macroeconomic headwinds primary cause for undervaluation.
  • Approximate fair value close to 30% higher than today’s market price.
  • 21-year history of uninterrupted dividend payouts carrying a present 3.20% annual yield.

As contributed to Seeking Alpha