Investment Philosophy


Hidden Asset Method

Accounting principles require the deprecation of certain assets that, in fact, often increase in value over time. These type of assets include

Real estate

Oil and gas reserves

Media assets

Accordingly, we tear apart a company’s balance sheet and assign our own value to such assets

  • When we first analyzed Madison Square Garden, Wall Street assigned a value of $0 to MSG’s air development rights.

  • By contrast, we saw the value of its real estate—located in an attractive part of New York City already under development by Vornado—as nearly equal to that of the enterprise value of the company. Essentially, at that price, investors were getting Madison Square Garden’s underlying business for free.

“Hidden” assets are undervalued assets on a company’s balance sheet based on GAAP accounting, which can potentially lead to a disparity between the market value of a company and its intrinsic or private market value. Hidden assets can include real estate, reserves of natural resources, and inventory reserves. Overlooked or hard-to-value investment holdings, brand equities, and entitlements to litigation proceeds are further examples of hidden assets.

Boyar Research identifies the assets on a company’s balance sheet that we consider to be undervalued. We then adjust those items to our perception of their current market value. The information derived from this analysis helps us determine the intrinsic or private market value of a business. If a company’s stock is selling at a significant discount to our estimate of its intrinsic value, we may choose to profile it in one of our publications.

* Past performance is no guarantee of future results. These results are unaudited. The Madison Square Garden example is for illustration purposes only and is not indicative of actual results of most investments made by Boyar Asset Management.