Clyde McGregor

One reason our results have been relatively strong is because our mistakes have been in smaller positions and our successes in larger ones. I attribute a lot of that to our partnership: I tend to be a glass-half-full person, while Ed [co-manager Edward Studzinski] behaves more as if the glass is broken and empty. He [...]

Clyde McGregor

We are required as analysts to present five, six or seven key reasons to own a stock, and if any of those start to erode, that's a warning sign we regularly track that often leads us to sell. For example, we have tended in the past couple of years to overestimate the intrinsic-value growth in [...]

Clyde McGregor

This is an old story, but a great example of when we did learn something was when Bill Smithburg of Quaker Oats bought Stokely-Van Camp, which owned by Gatorade. We couldn't understand the price he was paying, which seemed completely out of bounds. When we finally got an audience with him, he explained that the [...]

Clyde McGregor

The historical record on how management allocates capital acquisitions, divestitures, buying and selling of shares, etc.is ultimately most important to shareholder value, but we also pay attention to the level of management and director share ownership and whether they're buying or selling. We mean real share ownership, not just options. It's rare to see excellent [...]

Clyde McGregor

We want to maintain the discipline that we will invest in a company, regardless of size, if it meets our criteria. Part of that is because we learn from all the companies we own. Part of that is because it keeps us fresh and engaged and not stuck in the rut of looking at the [...]