Am I reading this correctly? The Lion Fund aka stock BH is holding in Cracker Barrel is up dramatically while Steak and Shake is dropping dramatically. Seems like and odd way to post gains for annual report. if so, the BH has a lot to be thankful for and should leave Cracker Barrel alone. On the other hand it may just be all pumping to bolster BH. I like the idea of BH but it is unclear if the Lion Fund will be a growth generator in the future.
Biglari puts forth the argument that the CBRL gains are attributable to his ideas and they increased their performance to thwart his efforts to join the board. I have seen any public info, regarding reasons or excuses for Steak & Shake's less than great performance. Lastly, I agree with a previous poster regarding Biglari's lack of diversification. Luckily this "bet the farm" move has earned significant gains for BH. However now comes big decisions regarding exit strategy and associated tax liability. He is not forced to make any moves and does face any timelines as far as I am aware.
The letter discusses investing in franchising as the recent for SNSs poor results.
He calls it a long term investment.
Will be interesting to see what he does with CBRL.
Does it "let it ride" to avoid paying taxes on the gains ?
Considering that taxes must be paid if & when he sells, maybe holding it for the long term and compounding his gains tax free might be better than the alternative ? Even assuming that CBRL stock gains of recent years will slow a great deal.
I continue to not be a fan of everyone not traveling to NYC for the annual meeting being "out of the loop".
They need to provide a transcript or a webcast or something for the rest of us.