Note 8 - Investments in Marketable Securities

6 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 8 - Investments in Marketable Securities

All investments are classified as “Current assets” because they are available for sale at any time. These “available-for-sale” marketable securities are stated at fair value. The Company uses quoted prices in active markets for identical assets (consistent with the Level 1 definition in the fair value hierarchy) to measure the fair value of its investments on a recurring basis pursuant to ASC 820, Fair Value Measurement. As of March 31, 2023 and September 30, 2022, there were net accumulated pretax unrealized gains of $153,361,000 and $120,692,000, respectively, recorded in the accompanying Consolidated Balance Sheets. Most of the accumulated pretax unrealized gains were in the common stocks of three U.S. financial institutions and one foreign manufacturer.

In March 31, 2023, the Company recorded and included in its net income the net unrealized gains on marketable securities of $32,669,000, as compared with the net unrealized losses on marketable securities of $44,409,000, in the prior year period.

In December 2022, the Company sold part of its marketable securities for approximately $2,826,000, realizing net gains of $422,000, and borrowed an additional $6,011,000 from the margin loan account to purchase additional marketable securities with a total cost of approximately $10,001,000. The Company repaid $11,000 subsequently. In addition, the Company received stock dividends in March 2023 worth approximately $2,978,000 from one of the companies in which it holds marketable securities.

In December 2021 and March 2022, the Company sold part of its marketable securities for approximately $80,570,000, realizing net gains on the sales of those marketable securities of $14,249,000, and borrowed an additional $43,014,000 from the margin loan account to primarily purchase additional marketable securities with a total cost of approximately $117,678,000. There was a subsequent repayment of $14,000.

Investments in marketable securities as of March 31, 2023 and September 30, 2022 are summarized below.

Investment in Financial Instruments

	March 31, 2023						September 30, 2022
	Aggregate fair value		Amortized/ Adjusted cost basis		Pretax unrealized gains		Aggregate fair value		Amortized/ Adjusted cost basis		Pretax unrealized gains
Marketable securities
Common stocks	$	318,773,000	$	165,412,000	$	153,361,000	$	275,529,000	$	154,837,000	$	120,692,000