The Boyar Value Group’s 1st Quarter Letter 2026

Boyar Value Group argued that periods of extreme concentration in market leadership—dominated by mega-cap "quality" stocks—rarely persist, and that elevated valuations on beloved companies risk repeating the Nifty Fifty and late-1990s patterns where excellent businesses became poor investments due to overly optimistic starting prices. The firm noted that Costco, Walmart, and Cintas, while outstanding businesses, trade at valuations leaving little room for error. When too much capital crowds into a small group of widely admired companies, other strong businesses get left behind—often where more interesting opportunities emerge. Boyar cited Madison Square Garden Sports and Uber as examples of undervalued alternatives outside the market's most crowded trades, where the gap between price and intrinsic value appears meaningful. Q1 2026 saw the S&P 500 fall 4.6%, with the Nasdaq declining 7.1%—its steepest quarterly drop since Q1 2025. Microsoft, which the firm considers one of the world's best businesses, fell 23.5% and now trades at 21.3x forward earnings, its lowest multiple since December 2018. The broader software sector declined 24.3%, with Salesforce and Adobe falling 29.5% and 30.5% respectively. Boyar's core thesis remains that valuation matters most, and patient investors willing to look beyond consensus winners stand to benefit.