Back in November I had some concerns about the valuation on Compass Diversified Holdings (NYSE:CODI),
and the shares have fallen about 2% since then, though that's not the
full measure of returns to shareholders given the sizable yield. While
Compass isn't exactly a Business Development Company, it is similar in
many respects and the performance has been similar to that group since
November.
Looking ahead, I like this business/investment, but
readers need to have realistic expectations here. Management runs this
operation more like Buffett runs Berkshire Hathaway (NYSE:BRK.A) or they way Danaher (NYSE:DHR) and Dover (NYSE:DOV)
management run those operations and less like many private equity funds
their operations (where the exit strategy is often a driving factor). I
don't think the company's current portfolio is geared towards major
growth and I do believe most of the trust's future growth is tied to
investments/acquisitions still to come.
Follow this link to the full article:
Compass Won't Be Changing Direction Soon
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