OracleofCarolina Posted February 8, 2014 Posted February 8, 2014 http://www.centralsecurities.com/AnnualReport2013.pdf I usually don't pay much attention to closed end funds, but this one is different. It has been around since 1929, it has beat the S&P 500 over the past 30 years with steady performance and minimal turnover in holdings. It's largest holding is Plymouth Rock, a non-public insurance company. With a 900k investment in 1982, the position is now valued at $110 million, about a 17% annual return not even counting dividends...not too shabby
DanielGMask Posted January 3, 2019 Posted January 3, 2019 http://www.centralsecurities.com/AnnualReport2013.pdf I usually don't pay much attention to closed end funds, but this one is different. It has been around since 1929, it has beat the S&P 500 over the past 30 years with steady performance and minimal turnover in holdings. It's largest holding is Plymouth Rock, a non-public insurance company. With a 900k investment in 1982, the position is now valued at $110 million, about a 17% annual return not even counting dividends...not too shabby Are you a shareholder? Are you familiar with the company?
mjm Posted January 3, 2019 Posted January 3, 2019 own fair amount in retirement plans. like it. plymouth rock stake may eventually be sold. plymouth kind of acts as buffer to NAV % as not publicly listed, but it valued pretty conservatively. wilmot and his trusts own I think around 80%.
bookie71 Posted January 3, 2019 Posted January 3, 2019 It has a double discount, one for market value and one for the valuation of Plymouth Rock
Williams406 Posted January 4, 2019 Posted January 4, 2019 mjm: has Central Securities publicly-stated anything suggesting a possible sale of Plymouth stake? Or were you just saying it's a hypothetical? bookie71: Looking at 12/31/17 data for both Plymouth I see the following: per share shareholder equity = $4,210 (page 14 of 2017 Plymouth AR) per share independent appraisal = $7,990 (1.9x book) with 20% discount = $6,390 Looks like Central Securities valued their Plymouth stake on 12/31/17 @ $5,100/share ($144 million/28,424 shares), a 35-40% discount to undiscounted Plymouth independent appraisal. In other words, Central Securities values it's Plymouth stake at roughly a 1.2x premium to Plymouth reported book at 12/31/17. That doesn't seem a stretch given book-value growth at Plymouth of late. Interesting idea...glad DanielGMask resurrected it. Has anyone come across language from Central Securities breaking out the impact on long-term returns from the non-Plymouth portfolio?
Spekulatius Posted January 4, 2019 Posted January 4, 2019 The deferred taxes on LT gains need to be taken into account, since the cost base of their long term holdings is so low.
Williams406 Posted January 4, 2019 Posted January 4, 2019 But in a scenario where a shareholder holds the position in a tax-deferred account, any realized capital gain distributed to shareholders from, say, the sale of the Plymouth stake would not ding the shareholder tax-wise, correct? My understanding is that as a closed-end investment corporation, Central Securities does not have that tax liability assuming the realized gain is distributed.
mjm Posted January 4, 2019 Posted January 4, 2019 williams406, believe CET sold 20% or so back to PROC few years ago and believe they/CET or PROC stated would like to sell back more or all ( believe wilmot on PROC board). believe PROC would like to buy back , but they also have their eye on SAFT( see their portfolio https://www.sec.gov/Archives/edgar/data/1496228/000156761918005956/xslForm13F_X01/form13fInfoTable.xml ) which is big in same state(MASS) that PROC started in. as Spekulatius stated they have a lot of deferred taxes therefore that is why i like it in my retirement plans. Also how does on reply to another with the pretty little bold print. know I am looking a little obtuse here.
Williams406 Posted January 4, 2019 Posted January 4, 2019 Thanks, mjm. I'll read through a few more CET annuals and see if I can track down the partial Plymouth sale terms.
Williams406 Posted January 4, 2019 Posted January 4, 2019 Looks like 35,000 shares were sold in 2013 to Plymouth for $92,750,000 or $2,650/share when the 20% discounted independent appraisal stood at $3,320. In 2015, 6,000 Plymouth shares were sold at a price not disclosed by CET.
mjm Posted February 9, 2019 Posted February 9, 2019 on second page of this PRIC chairman report is what I mentioned about CET wishing to eventually exit its PRIC position. also CET annual out and although no buffett is a nice read https://www.plymouthrock.com/public/Plymouthrock/StaticFiles/PDF/rpt2013.pdf
OracleofCarolina Posted February 7, 2020 Author Posted February 7, 2020 http://www.centralsecurities.com/financialReports.cfm latest annual report is out Cheers,
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