Available upon request
- Investor Presentation
- Quarterly Letters
- Monthly Snapshots
Ted Williams – Investing
Williams approached hitting just the way the thoughtful investor should approach the craft of investing, with a healthy mix of analytical seriousness, intellectual curiosity and a love of the game. He displays an unwavering commitment to excellence and to constant improvement. He loved analyzing baseball and talking about its finer points, just as the best investors can’t help but immerse themselves in conversation and study regarding investing. As Williams writes in The Science of Hitting, “In my 22 years of professional baseball, I went to bat almost 8,000 times, and every trip to the plate was an adventure, one that I could remember and store up as information.” Request paper.
The Beatles – 5 Investment Lessons
The challenge that stands before a professional investor each year is the same challenge that faces a recording artist. They each want to top last year’s performance, and they each need 10 or 12 new pieces of material to achieve the goal. The “material” a recording artist needs is 10 or 12 new well-written songs, while an investor needs 10 or 12 new well-researched stocks. In each case, the work must be of high quality, so as to produce at least two or three big “hits” to drive the album’s or the portfolio’s performance. Think of your all-time favorite music album, and then imagine it without the top 3 songs—it’s no longer your favorite album. It’s the same with investing: Lop off your top 3 performers each year, and you won’t generate outsized returns. Request paper.
Two Overlooked Pools of Value
Researching and acquiring investments from an underappreciated pool of assets is what we seek to do at Goshawk. In our case, the underrated pool of assets we often search is the pool of corporate spin-offs. A spin-off is a corporate action in which a company splits itself into two separate publicly traded companies with separate management teams. Companies implement these transactions in order to potentially seek true value for the separate assets, but there is often a period of perceived uncertainty during the process when spin-off firms can be purchased at bargain prices. Request paper.
Maxims that Guide Our Work
There’s more than one way to succeed at investing, but we have our own clear perspective on what works for Goshawk. There’s a consistency of thought that pervades our work, and the maxims below offer insight into how we think about the significant advantages of our opportunistic philosophy. These maxims are simplifying principles we have developed or observed over many years; we’ll repeat them to ourselves (and add to them) for the next 20 years. Request paper.
Business Theme – Connected Products
You may have read about Connected Products (CP) in articles that use terms such as The Internet of Things (often abbreviated as IoT) or Machine-to-Machine (M2M) communication. As investors, our interest has been in firms specializing in business-to-business applications of CP, where such uses can increase productivity, reduce labor cost and raise returns on capital. When we say CP, we mean manufactured mechanical products that have been made more valuable through the addition of sensors, microcontrollers and network connections. This paper discusses traditional businesses that are made better through Connected Products technology. Request paper.