Quarterly Reports

December 31, 2017 Quarterly Report

“Wildfires and earthquakes shouldn’t really come as a surprise to those of us who live in California, yet, when they occur, it is still a shock. The advice we get is to “expect the unexpected” – to prepare by setting aside drinking water and shelf-stable food that might be needed in an emergency. There are parallels to the idea of planning for the aftermath of a natural disaster and being prepared in advance of an unexpected market downturn. For one, financial strength is a factor that is emphasized in our analysis of investments – I suppose that’s akin to having your home bolted to the foundation, a practice that reduces earthquake damage. At Poplar Forest, we also prefer companies that have sustainable free cash flow, which may be equivalent to those supplies of water and canned food. Finally, we use scenario analysis to examine how our investments will perform, not just in good times, but also in the equivalent of investment wildfire.” - J. Dale Harvey

September 30, 2017 Quarterly Report

“When looking at stocks, I think from the perspective of someone who owns the whole business with plans to own it indefinitely. The enterprise is sure to have both good and bad years, but what I concern myself with is the average year – what I consider “normal” – or, said another way, what the business should be able to do as opposed to what it currently is doing. Where others may get scared away by sub-normal results, the opportunity to close the gap between current and normal whets my appetite.” - J. Dale Harvey

June 30, 2017 Quarterly Report

“Too often, I’ve seen investors chase performance to their detriment while ignoring opportunities to invest in good strategies when they are out-of-sync with the broad market. While it may sound counterintuitive, Poplar Forest’s results right now are as bad as they ever have been relative to the S&P 500®, and I believe that makes this a particularly compelling time to invest with us.”- J. Dale Harvey

March 31, 2017 Quarterly Report

For many investors, the current investment environment feels challenging. The new administration in Washington is charting a very different path than that pursued by the Obama team. For much of the preceding eight years, the Federal Reserve was the focus of investor attention.

December 31, 2016 Quarterly Report

In recent months, we have felt the consensus opinion start to move in our direction. Perhaps the slowly improving economy has enhanced investors’ risk tolerance, possibly it’s the election, or maybe a review of the return from stocks has raised investor confidence.

September 30, 2016 Quarterly Report

At Poplar Forest, we’re focused on delivering results that can’t be replicated by a computer algorithm. We spend our time investigating companies with the goal of distinguishing the “cheap for good reason” from the real bargains (like a red convertible on a cold winter day).