Investment Philosophy


The Business Value Method

We believe excessive pessimism about an industry or a company could result in extreme disparities between the public market value of a company and what a knowledgeable private investor would pay for the entire business. When employing the Business Value Method, Boyar Research considers a company’s long-term earnings power, competitive advantages, present product mix, capital allocation decisions, financial strength, and the prices for which similar companies have been acquired in the recent past. Such analysis helps us attach the appropriate value to a company’s shares.

An example of how Boyar Research utilized this approach on both the short and the long side is with the U.S. housing industry. In 2007, we were extremely bearish on the industry. We published an extensive research report detailing why we believe our clients should consider shorting the merchant builders.

To download a copy of this report, please click here.

In 2011, we thought the pessimism surrounding U.S. Housing was reaching an extreme and we wrote a 93 page report detailing why our clients should consider revisiting housing related stocks.

To download a copy of this report, please click here.

The performance of the companies featured in this issue through August 8, 2017 is detailed in the following table*

Price on 9/13/11 Price on 8/8/17 % Change
Equifax 31.01 142.37 359%
Mohawk Industries 44.04 248.96 465%
Watsco 57.25 151.11 163%
Whirlpool 53.27 178.54 234%

The average performance for all the companies

305%

S&P 500

1,172.87

2,474.92

111%

* Past performance is no guarantee of future results. These results are unaudited.