An Ode to Ugly Shoes
At the risk of stating the obvious, generating sales in a company is a lot easier than generating profits on those sales. Yet investors often become captivated by revenue growth while paying less attention to the profits that ultimately accrue to shareholders. A company can generate billions of dollars in annual sales and still struggle […]
SpaceX: To Infinity and Beyond or a Pie-in-the-Sky?
Everybody seems to know that SpaceX went public last week. Space Exploration Technologies Corp (Ticker: SPCX) sold 555,555,555 shares to the public with the help of a gold-plated group syndicate led by Goldman Sachs. Today, the group exercised a greenshoe option that allows them to allocate another 83,333,333 shares of SPCX to satisfy eager, would-be […]
Pinterest: When Free Cash Flow Isn’t So Free
A Case Study on the Corrosive Effects of Stock-Based Compensation & The Need for a More Thoughtful Calculation of Owner’s Earnings Henry W. Schacht, CFADevotion Capital ManagementFounder & Chief Investment Officer March 24, 2026 Buybacks are often presented as a straightforward benefit to shareholders. If a company repurchases its own stock, each remaining share is […]
Lyft: A Rare Signal of Partnership
Occasionally a company does something that reveals how it truly views its shareholders. Lyft (ticker: LYFT) recently did just that—and the move is both shareholder-friendly and rare. In August 2025, the company eliminated its dual-class share structure after founders Logan Green and John Zimmer converted all of their super-voting Class B shares into ordinary Class […]
Costco: Love the Company, Hate the Stock (Price)
With all the geopolitical uncertainty, Costco Wholesale Corporation (ticker: COST) is seen as a safe harbor in a storm. In preview, we recommend caution. Bulls will say that COST shares rose after the company reported quarterly earnings above expectations. Indeed, in its most recent earnings report, Costco posted $4.58 per share in earnings. This compares […]
Commentary on our Letter to Subaru
We recently sent a written communication to Subaru Corporation (Tokyo: 7270.T | ADR: FUJHY). https://devotioncapital.com/subarus-ownership-stake-in-toyota-shareholder-inquiry/ Our Japanese is rusty and the company does not appear to accept email communications from shareholders, so we have resorted to the modern equivalent of the Pony Express: a physical letter. Our reason for writing is straightforward: to confirm the […]
Subaru’s Ownership Stake in Toyota: Shareholder Inquiry
Henry W. Schacht, CFADevotion Capital ManagementPost Office Box 777Notre Dame, IN 46556United StatesEmail: henry@schachtvalue.comPhone: 574-273-9846 March 03, 2026Investor Relations DepartmentSubaru CorporationEbisu Subaru Building1-20-8 EbisuShibuya-ku, Tokyo 150-8554Japan Dear Investor Relations Team, I am writing as a shareholder and investor seeking clarification regarding Subaru Corporation’sownership interest in Toyota Motor Corporation.Specifically, I would appreciate confirmation of the following: […]
Whirlpool: Shareholders are Rowing Alone
Whirlpool: Shareholders are Rowing Alone Whirlpool Corporation (ticker: WHR) is in the headlines today after Appaloosa sent a sharply worded letter to the board criticizing capital allocation decisions and specifically a decision to raise capital by selling additional shares. Appaloosa is a hedge fund led by David Tepper, one of the most successful investors of […]
Lithia Motors/AutoNation: When FCF Isn’t Really Free
When Free Cash Flow Isn’t So Free AutoNation (ticker: AN) and Lithia & Driveway (ticker: LAD) are two of the largest automotive retailers in the United States. They operate dealership networks that sell new and used vehicles. In addition, they provide service and parts and increasingly originate auto loans through their finance platforms. In short, […]