Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Compass Won't Be Changing Direction Soon

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...

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