Why Capital Southwest Is Poised to Outperform


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, public investment firm Capital Southwest has earned a respected four-star ranking.

With that in mind, let's take a closer look at Capital Southwest and see what CAPS investors are saying about the stock right now.

Capital Southwest facts

Headquarters (founded)

Dallas, Texas (1961)

Market Cap

$459.6 million


Asset management

Trailing-12-Month Revenue

$11.0 million


Chairman/CEO Gary Martin
COO/CFO Tracy Morris

Return on Equity (average, past 3 years)


Cash / Debt

$67.6 million / $0

Dividend Yield



American Capital
Ares Capital
Gladstone Capital

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 99 members who have rated Capital Southwest believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, thecinimod, succinctly summed up the Capital Southwest bull case for our community:

This is a solid investment company appropriately described as a mini Berkshire Hathaway . It is currently trading for about 70% of the [book value] of the assets it owns, which are themselves public companies and fairly easily and transparently valued, and it has sizable insider ownership -- always a good sign. To paraphrase Buffet, you can make a lot of money when you buy dollars for 70c, and that's what this company is.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Capital Southwest may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Capital Southwest Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.