Portfolio Positions Heading in to 2026

Goodheart-Willcox is a publisher of career, technical, health and physical education textbooks. It has a capital-light e-book division that is growing quickly. The business requires minimal capex and consistently throws off cash. In fiscal 2025, it generated $23M in free cash flow on a market cap of $193M (12% cash yield). The company has a history of distributing cash to shareholders through special dividends and tender offers. The stock is illiquid and obscure, which is why it's cheap.