Dear Fellow Shareholders…
Over 30 years of wit, wisdom, and value investing insights
For over 30 years, Legendary Value Investor, Martin J. Whitman, has written comprehensive shareholder letters that provided readers with thorough lessons in his investment philosophy, security analysis and value investing. The collection of excerpts from letters in this book comprise the “best of” Marty’s writings organized thematically to give readers an opportunity to dive into specific topics of interest.
- 5. Third Avenue Value Investment Philosophy
- 6. Third Avenue is Different
- 7. Consistent Performance and Averaging Down
- 8. Value Investing at Third Avenue
- 9. The Concept of Net-Nets
- 10. The Third Avenue Formula for Investing
- 11. Net-Nets on Steroids
- 12. Fundamental Finance
- 13. Third Avenue and the Efficient Market Hypothesis
- 14. Portfolio Diversification
- 15. Risk Arbitrage
- 16. Index Funds and the General Market
- 17. The Importance of Buying Cheap
- 18. The Moral Hazard Question
- 19. Third Avenue Value Fund Compared to Private Equity Funds
- 20. Risk from a Third Avenue Point of View
- 21. Securities Regulation, Disclosure and Third Avenue
- 22. Characteristics of Long-Term Investing
- 23. Thoughts on the Detroit Bailout
- 24. On Creditworthiness
- 25. The Unimportance, and the Importance, of Book Value
- 26. Third Avenue Approach to Valuation
- 27. Corporate Valuation
- 28. Role of Accounting in Security Analysis
- 29. Fair Disclosure
- 30. How Third Avenue uses Accounting Disclosures
- 31. Proposed Elimination of Double Taxation on Corporate Dividends
- 32. Reforming Generally Accepted Accounting Principles
- 33. So What Are Earnings, Anyway?
- 34. Conventional Security Analysts
- 35. Corporate Uses of Cash
- 36. Financial Accounting
- 41. Modern Capital Theory and Fundamental Investing
- 42. The Third Avenue Approach vs. The Conventional Academic Approach
- 43. Third Avenue and the Efficient Market
- 44. Generally Accepted Accounting Principles and the Enron Mess
- 45. Reconciling Modern Capital Theory and Value Investing
- 46. Characteristics in Modern Capital Theory
- 47. Going Concerns and Investment Type Companies
- 48. Value Investing
“Perhaps the most sophisticated writer is Third Avenue’s Martin Whitman…Whitman has taken the time and energy to treat shareholders like what they are: owners of [the] investment. He works for the shareholders, and in this capacity, he gives them the respect they deserve.” MORNINGSTAR April 1996
The book’s first section, “The Roots”, includes Martin J. Whitman’s proxy solicitation to the shareholders of the Equity Strategies Fund (EQSF) written in 1984. Marty and his colleagues at M.J. Whitman effected a takeover of EQSF, a closed-end registered investment company. We included the letter of solicitation for the proxy vote and a section from the proxy statement which outlined the investment philosophy that would be the foundation for Marty’s future investments. In 1990, EQSF was closed to new investors and a successor fund, the Third Avenue Value Fund, was launched.
Marty was the portfolio manager for the Third Avenue Value Fund for the next 22 years and wrote some of the industry’s most lauded shareholder letters. He continued to write the Chairman’s Letter after his retirement as Portfolio Manager of the Fund in 2012. Since that time, Marty has managed his family’s money in the Whitman High Conviction Fund, a private investment Fund that adheres to the strict value discipline outlined in this book.
MARTIN J. WHITMAN is the Founder of Third Avenue Management LLC. He was portfolio manager of the Third Avenue Value Fund for over twenty years and has written extensively on value investing and security analysis. Mr. Whitman taught courses in value investing for over thirty years at both Syracuse University and Yale University. Syracuse University’s Whitman School of Management is named in his honor.
Dear Fellow Shareholders... Copyright © 2016 by Martin J. Whitman. All Rights Reserved.