On page 30 Buffett states
"At both BPL and Berkshire, we have never invested in companies that are hell-bent on issuing shares. That behavior is one of the surest indicators of a promotion-minded management, weak accounting, a stock that is overpriced and -all too often-- outright dishonesty." BH issues shares twice in the past 2 years.. Thoughts?
And now with a warchest, lets hope he buys something that also does well.
And hopefully we can get some of the governance issues resolved.
Way too much stuff that looks bad. Even though the 25% after 6% isn't that bad by itself.
Him selling his fund to BH and then buying it back for less looks REALLY bad.
And, Im not a fan of regular rights offerings either. Live within your means.
“The only magazine that was able to make this kind of turnaround was Vanity Fair [back in the 1990s], but they didn’t substantially change their audience,” said Samir Husni, head of the Magazine Innovation Center at the University of Mississippi. “Maxim has two million lads who expect babes, beer and sport, and there is no amount of money in the world that can transform them into the audience you have at GQ or Esquire.”
Article is free if you google it but not if you click on yahoos link.
Voting all my shares and encourage others to do the same in favor of Groveland. Disclosure: no affiliation with Groveland.
Well, you have to admit, they did a darn good job if using his own words and his own proxy contest against him. The difference is, he owned a good chunk back then. These guys do not.
What does he do for the $900K and the $1.6M? What skill does he have other than pay himself a fortune???My opinion only Didn't he renege on the $10M cap? As in Shark Tank, I'm out
It would be nice you you got your facts right. Biglari gets no salary from BH in his capacity as investment manager. The incentive fee is his only payment. The $900k is his yearly salary as CEO of BH.
I don't think that BH has any out of pocket cost for the office space. Its the same space where Biglari is working in his capacity as BH CEO. The $1.6mil is the "value" of the office costs, but it seems to me that those costs would be borne by BH whether or not Biglari was using the office in his BC capacity at all.
If his dad and brother have even a portion of his skills, than I'm extremely happy that he's hired them. They certainly aren't being overpaid.
And pray tell, why should we care who the custodian is? Considering the fact that most of Biglari's net worth is tied up in The Lion Funds, I'm guessing that he is pretty careful about who he uses as his custodian.
Just read the Groveland Proxy and they are saying exactly what I have said here. Groveland will lose because Big Larry will vote his Lion Fund for himself. Say hello to a rich CEO and poor shareholders. I am not staying around for the conclusion of this fiasco. My opinion only..good luck to all.
The average S+P co. over the last 100 years makes 12% return on equity. Why pay someone $900K up front plus 25% over 6%. The whole scheme is nuts. I want some sort of a claw back from the Lion Fund. imho
I would not be in such a hurry to cast my votes until i hear the rebuttals. the alternative proxy statement is doing exactly what its intended to do, sell you on the raiders. it has not really offered up any plans for the future. i would be hesitant to turn over the controls to an individual with a minimal financial interest and no industry experience, who could potentially end up inserting himself as ceo, as he has previously done. I appreciate that some changes might be a good thing, but i would be careful about what you wish for... see recent airt poison pill.
They make a darn good case against Biglari using many of his own words against him.
It will be darn interesting. Sounds like ISS will agree with them.
What concerns me is there wasn't much about fighting the change of control payments.
Maybe some kind of settlement Is in order.
I will vote for at least half if not all of grovelands guys.
Anyone is free to ignore anyone. Some like my opinions and some will not..I am totally cool with that. Nothing here is personal. I like to read messages so that I might learn something and be a better investor. In turn, maybe something I say may help someone too!!!What is a great hobby in your opinion???
I really believe no one knows what the hell his "incentive" is going to be since the full Lion agreement is SECRET. It could be anything as far as we know. We know BH pays $1.6M to BC for his office costs. We know SB gets $900K a year up front before any fees. We know his Dad and brother are on the payroll. We know he gets a big cut on "profits" whatever that is. We have no idea who the custodian is. The whole thing is some giant abyss. Am I fearful? YES My opinion only, comments welcome!