Oak Value Q4 Letter

In Closing…
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To paraphrase a story we heard last spring in Omaha as told by a wise investor with a penchant for drinking Cherry Coke and eating at Dairy Queen,

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Let’s say a farmer, who is a good, experienced farmer, familiar with all the latest and greatest methods, experiences a lousy crop. A man appears at his door and offers him a sum for his farm that is 50 percent below what a nearly identical farm down the road sold for two months earlier. Due to the lowball offer, has this farm become a riskier business? The answer, of course, is no. In fact, the opposite is true—at the new, lower price, generating investment returns is easier. Market volatility can be frightening in the near-term, but as long as that farmer wasn’t about to sell his farm immediately to a luxury condo developer, he’s fine; in fact, if he’s of a certain disposition, he probably puts on his Sunday best and rides down the road to see if he can buy a nearby tract.

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We thank you for the confidence you have placed in the Oak Value team. In the context of this paraphrased story, we are wearing our Sunday best…