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	<title>Compounding Life &#187; book value</title>
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	<link>http://compoundinglife.com</link>
	<description>The thoughts of a personal investor</description>
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		<title>WSC Dividend Increase</title>
		<link>http://compoundinglife.com/wsc-dividend-increase/</link>
		<comments>http://compoundinglife.com/wsc-dividend-increase/#comments</comments>
		<pubDate>Mon, 26 Jan 2009 22:22:17 +0000</pubDate>
		<dc:creator>KC</dc:creator>
				<category><![CDATA[Buffett]]></category>
		<category><![CDATA[Dividends]]></category>
		<category><![CDATA[Value Investing]]></category>
		<category><![CDATA[stocks]]></category>
		<category><![CDATA[berkshire]]></category>
		<category><![CDATA[book value]]></category>
		<category><![CDATA[charlie]]></category>
		<category><![CDATA[dividend]]></category>
		<category><![CDATA[hathaway]]></category>
		<category><![CDATA[increase]]></category>
		<category><![CDATA[munger]]></category>
		<category><![CDATA[warren buffett]]></category>
		<category><![CDATA[wesco financial]]></category>
		<category><![CDATA[wsc]]></category>

		<guid isPermaLink="false">http://compoundinglife.com/?p=89</guid>
		<description><![CDATA[Got a tweet from DividendStocks ( website link ) about a dividend increase post on Seeking Alpha. One of the companies increasing their dividend is Wesco Financial  (WSC). WSC is run by Charlie Munger and 80% is of the stock is owned by Berkshire Hathaway.  I have a small position in WSC and while the [...]]]></description>
			<content:encoded><![CDATA[<p>Got a <a href="http://twitter.com/">tweet</a> from <a href="http://twitter.com/DividendStocks">DividendStocks</a> ( <a href="http://www.dividendstocksonline.com/">website link</a> ) about a dividend increase <a href="http://seekingalpha.com/article/116482-a-busy-week-for-dividend-increases">post on Seeking Alpha</a>. One of the companies increasing their dividend is <a href="http://www.wescofinancial.com/" target="_blank">Wesco Financial</a>  (<a href="http://finance.google.com/finance?q=WSC" target="_blank">WSC</a>). WSC is run by Charlie Munger and <a href="http://finance.yahoo.com/q/mh?s=WSC" target="_blank">80% is of the stock is owned by Berkshire Hathaway</a>.  I have a small position in WSC and while the dividend increase of 1 cent from 0.385 to 0.395 is not very much it is still signifigant because WSC has consistently increased their dividend payment for 37 years.  As the <a href="http://www.seekingalpha.com" target="_blank">Seeking Alpha</a> article states:</p>
<blockquote><p>Wesco Financial Corporation is a dividend champion and an achiever</p></blockquote>
<p> </p>
<p>Some people <a href="http://community.investopedia.com/news/IA/2008/Meet-The-Berkshire-Of-Southern-California-Legal-Publishing-DJCO-GCI1203.aspx" target="_blank">consider WSC to be a mini-BRK</a> but Charlie states his own thoughts on that subject in the <a href="http://www.wescofinancial.com/page2.html" target="_blank">2007 annual letter</a>:</p>
<blockquote><p> </p>
<p>Business and human quality in place at Wesco continues to be not nearly as good, all factors considered, as that in place at Berkshire Hathaway.Wesco is not an equally-goodbut-smaller version of Berkshire Hathaway, better because its small size makes growth easier. Instead, each dollar of book value at Wesco continues plainly to provide much less intrinsic value than a similar dollar of book value at Berkshire Hathaway. Moreover, the quality disparity in book value’s intrinsic merits has, in recent years, continued to widen in favor of Berkshire Hathaway.</p>
<p>All that said, we make no attempt to appraise relative attractiveness for investment of Wesco versus Berkshire Hathaway stock at present stock-market quotations.</p></blockquote>
<p> </p>
<blockquote><p> </p></blockquote>
<p>One interesting thing to note is that from a value perspective WSC is trading at a discount to its cash and book value. Considering who is at the helm I think you can trust their accounting  practices and valuations a lot more than most. </p>
<p>On a slightly humorous note it looks <a href="http://www.wescofinancial.com/" target="_blank">Wesco</a> and <a href="http://www.berkshirehathaway.com/" target="_blank">Berkshire</a> do share the same web designer <img src='http://compoundinglife.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
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