I like finding oddball stocks that few people know about or bother following. One of the great things about investing is that little-known stocks can be great investments.
Just look at the great performance of a stock like Leucadia National (LUK) which is up about 22,000% over the last 30 years. LUK is rarely mentioned in the news, which is how the company likes it. I can’t think of another company with a market cap of $5.5 billion that had a website that looks like this.
Recently, I’ve been looking at Seaboard Corp. (SEB) which is another little-known stock. Seaboard is in the pork business. There’s almost no news. Tiny volume. Not much volatility and no analysts follow it. Plus, they never split their stock.
Thirty-five years ago, you could have picked up a share for $5-1/8. Today, it’s going for $1,549. That’s over 30,000%. Over the same time, the S&P 500 has gone up by 1,500%.
The thing I don’t get is why Seaboard pays a quarterly dividend of 75 cents a share. At the current price, that’s less than 0.2% a year. Why bother?