Staley Cates

If the stocks we own are as beaten down as we think they are, we better see management and the board acting on the same premise.

Staley Cates

One key situation we find of interest is when we believe unrepresentative accounting obscures the true value of the business. With DirecTV, for example, subscriber acquisition costs are expensed immediately rather than capitalized over time, which hides the true free cash flow. With Chesapeake Energy, the best deals they’ve done have been percentage interests they’ve [...]

Staley Cates

Comfort in investing comes at a high cost. Selling stocks in 2007 would have felt uncomfortable, but in retrospect we all should have done more of that. Buying or even holding stocks in early 2009 was equally uncomfortable, but investors should have done that as well. We get comfort from the consensus, but making the [...]