American Capital (ACAS) Reports Good 4Q12 Results

American Capital (ACAS) reported 4Q12 earnings before the market open on 2/11/2013. It was a good quarter and an outstanding year. Although the rate of improvement has slowed from the extraordinary (but unsustainable) rates we experienced recently there continues to be encouraging signs of further returns. Our investment thesis continues to play out well. We centered […]

Value Investing Principles Point to Success in Buying and Selling

The dilemma is we try to know something we can’t: We know that to make money in the stock market we need to “buy low and sell high” which is easier said than done. Doesn’t that put us in the difficult position of trying to figure out if the market is going to go up […]

Building a Portfolio around Value

Value investing provides advantages that can be compounded in a portfolio. Keep in mind though; there is really no one answer for everyone. Circumstances, situation in life, available resources, time available and opportunities in the market place, to name a few will influence holdings in your portfolio.  That’s why in our Value by George portfolio all holdings […]

Genworth Update

Mortgage Delinquency Rates Continue to Improve: Lender Processing Services, Inc. (LPS) provides analytics on the mortgage and real estate industries with a loan-level database representing approximately 70 percent of the overall market. What better leading indicator and gauge for the health of the mortgage business than those collecting the payments? The table below is LPS’s […]

Treasury Exits AIG; Valuation Update

The U.S. Department of the Treasury announced that it is offering all of its remaining 234 million AIG shares for sale at $32.50/share for a total $7.6 billion. The offering is expected to be completed on Friday. This sale ends government ownership and combined with the recently announced International Lease Finance Corporation (ILFC) sale will eliminate the remaining major […]

Genworth (GNW) Investment Thesis: Part I What went wrong?

Genworth Financial, Inc. (GNW): Genworth Financial, Inc. (GNW) provides insurance and financial management in the United States and internationally including fixed annuity products, life and long-term care insurance; payment protection; and mortgage insurance to insure residential mortgage loans. With more than 15 million customers in 25 countries the company was spun off from General Electric, Inc. […]

Genworth (GNW) Investment Thesis: Part II Turnaround and Valuation

In Genworth (GNW) Investment Thesis: Part I we discussed what led to the collapse in the share price and why it is still trading at a huge discount to intrinsic value. The central question: is this deep discount justified or is it a value investing opportunity created by past worries, fear and excessive pessimism? To […]

American International Group (AIG) Reports 2Q12

American International Group (AIG) reported 2Q12 earnings after the market close 8/2/12 and held their conference call on 8/3/12. It is an excellent report and our investment thesis remains on track and is ahead of schedule. You will recall our investment thesis is centered on the recapitalization of the company since the financial and credit […]

Risk and Investor Discipline

We have been taught that a high rate of return requires that we take greater risks and the way to manage that risk is diversification. This is flat wrong and detrimental to our wealth. How can such a widely held view be wrong and if it is what is the correct view? The answers are […]

Brookfield Asset Management (BAM) Reports Strong 1Q12 Results

Brookfield reported strong financial and operating performance and remains well positioned for future growth. The investments made over the past four years are making a significant contribution to results with strong performance from major businesses. More information provided on the spinoff of Brookfield Property Partners at the annual meeting and in the Shareholder Letter. Management […]