Capital Southwest 2009 Investor Presentation

A reader and fellow shareholder in Capital Southwest (CSWC) recently commented that he'd like to hear more about the company. My response was (and is) that I would, too.

But CSWC management shuns the press and to my knowledge has never done conference calls. They put out quarterly reports and the very occasional press release. In this media/internet age some may find that disquieting. Not me and I hope not you.

Most important is that for every $1.00 this business development firm puts to work, management is on the hook for 20 cents. They're aligned with us shareholders.

If you're new to CSWC, you can access the 2009 Investor Presentation from last month here. Maybe these guys are becoming something of publicity hounds -- I don't remember them doing many of these back in the days when the late Bill Thomas ran the company. ;-)

The stock is down since I bought it. But never mind. I like this company and its management and I expect to being owning this stake for a long, long time. In fact, as reported here previously, this is the only company where my broker has been instructed to reinvest all my dividends.

And, thankfully, this bull rally has most of my stocks in the black. Yet CSWC ranks as a bargain. And, if I inherited a portfolio 100% in cash, the first thing I'd do is put 4% to 5% in CSWC.

Comments

[Philip]

thanks for the post.

[John]

@Philip: You're welcome :-)

[Philip]

So I noticed today that CSWC jumped by 7%, so I was digging around to see what might have been a catalyst for that. I noticed that a quarterly report had been filed with the SEC. http://www.sec.gov/Archives/edgar/data/17313/000101054909000726/0001010549-09-000726-index.htm Was it because CSWC reported "net realized gains on investments for the six months ended September 30, 2009 totaled $1,846,516 before tax provisions while net realized losses on investments for the six months ended September 30, 2008 totaled $48,041."?

[John]

@Philip: Could well be. But CSWC trades very thinly. So it doesn't take much to move it up or down in one day in any significant way.