RESOURCES
For over 30 years, Third Avenue Management founder Marty Whitman wrote comprehensive shareholder letters that provided readers with thorough lessons in his investment philosophy, security analysis and value investing. In 2016, we published a collection of excerpts from his letters that comprise the “best of” Marty’s writings organized thematically to give readers an opportunity to dive into specific topics of interest.
Please use the form below to request a copy of the book. We hope you enjoy reading these excerpts and continue to find them insightful and witty.
Opportunistic, bottom-up, value investing strategies are capable of producing long-term outperformance, relative to broad market indices, even while such value strategies are not designed to produce consistent outperformance in all periods of time.
In the effort to produce long-term outperformance, one should seek to purchase substantially undervalued securities as defined by a significant discount to a conservative estimate of readily ascertainable net asset value (“NAV”).
Investment decisions should emphasize price as it relates to three factors inherent in a company: quality of resources, quantity of resources and long-term wealth creation potential.
Unlike reported earnings, long-term wealth creation tends to be derived from three primary sources including cash flows available to security holders, resource conversions, or super-attractive access to the capital markets.
Security price volatility is not synonymous with investment risk, nor is there a necessary trade-off between investment risk and potential investment returns. Instead the lower the price one pays for an investment, the higher the potential returns and the lower the investment risk.
A determination to underpay frequently compels one to invest in industries, geographies or companies where the near-term outlook is generally perceived to be poor–requiring a corporate culture and client base supportive of this contrarian approach.
In the pursuit of opportunities in countries, industries or companies for which the near-term outlook is challenging, it is critical to place a heavy emphasis on a company’s financial wherewithal.
Benchmarks should have no bearing on investment activity, and high active share is a natural outcome of a differentiated investment approach. In fact, contrarian, special situation, or otherwise unconventional investments are often the path to superior long-term results.
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The fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 800-443-1021 or visiting www.thirdave.com. Read it carefully before investing.
Distributor of Third Avenue Funds: Foreside Fund Services, LLC.
Mutual fund investing involves risks, including the potential loss of principal. Investors should consider the investment objectives, risks, charges and expenses carefully before investing. Third Avenue Funds are offered by prospectus only. The prospectuses are available on the Fund Literature page or by calling (212) 906-1160 (800-443-1021). Read the prospectus or summary prospectus carefully before investing.
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