VersaillesinNY

Congrats racemize, your wife did surprise you! Warren does answer his mail. A couple years ago, I sent him a letter along with a Sophia Loren photo book. He replied with a handwritten thank you note and did not return the book :)

Thanks ajc!

Ourkid8: When star investor Warren Buffett came knocking on his door in 2008, Riegel sent him away. "Money was never my motivation," he said at the time. "I don't even know when I made my first million." Source: http://www.spiegel.de/international/business/former-haribo-leader-hans-riegel-dies-at-90-a-928034.html My guess is that he should have attended a Berkshire Annual meeting before declining Warren's offer. ;)

According to Bloomberg Business week: Hans Riegel sounds like something straight out of Charlie and the Chocolate Factory. The chief executive of German candy maker Haribo, best known for its chewy Gummy Bears, is eccentric, yet kindly to his employees and hugely successful in business. Every morning Riegel calls his top managers one by one into his Bonn office and personally distributes their mail, his way of keeping tabs on developments. Riegel sometimes stands at the end of the Haribo conveyor belts as they spew out licorice snails or golden chewy bears—100 million pieces of candy a day—stuffing his cheeks with samples. To keep in touch with Haribo's target market, Riegel watches children's TV programs and reads comic books. Riegel, who doesn't believe in ad agencies, writes Haribo TV commercials himself. This quirky management style seems to work. Family-owned Haribo doesn't release financial information, but Germany's Manager magazine estimates sales at $1.5 billion. Unlike Willy Wonka, though, Riegel does not plan to choose a successor by stashing a golden ticket in a chocolate bar. Ownership will pass to a foundation that will oversee management. Here are some nice papers on this marketing & sales champion whose leader just passed away. When star investor Warren Buffett came knocking on his door in 2008, Riegel sent him away. "Money was never my motivation," he said at the time. "I don't even know when I made my first million." http://www.spiegel.de/international/business/former-haribo-leader-hans-riegel-dies-at-90-a-928034.html The golden gift (A must read if you enjoyed the book: The Emperors of Chocolate) https://www.hersheystory.org/lib/pdfs/winners/The%20Golden%20Gift.pdf Hans Riegel, German Gummi Bear Baron, Dies At Age 90 http://www.huffingtonpost.com/2013/10/15/hans-riegel_n_4101090.html The History, Making and Influences of Gummi Bears http://voices.yahoo.com/the-history-making-influences-gummi-bears-73490.html CEO Hans Riegel rare interview (in German - I wish it had English subtitles) "He who retires early gets old faster." Hans Riegel

It's interesting to see that Apple is hunting for retailers talents. Here is recent TED video featuring their latest pick: Angela Ahrendts. Burberry CEO Angela Ahrendts talks about the positive and transformative power of human energy Published on Apr 27, 2013 -------------------- "I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel." Maya Angelou

CEOs to Face Berkshire-Loyalty Test http://online.wsj.com/news/articles/SB10001424052702304500404579125312054180366

A great entrepreneur just left us: http://www.montrealgazette.com/entertainment/Paul+Desmarais+Power+Corp+dynasty+dies/9015677/story.html Buffett Loses to Desmarais as Power Exceeds Return - Bloomberg 2009 http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aEl4wizkuSTQ Paul Desmarais: A kingmaker expounds - Globe and Mail 2008 http://www.globeadvisor.com/servlet/ArticleNews/story/gam/20080703/RYAKABUSKI03 Power Corp. shows Buffett how it's done - Globe and Mail 2011 http://www.theglobeandmail.com/globe-investor/investment-ideas/power-corp-shows-buffett-how-its-done/article589406/ Paul Desmarais Sr. rare interview (in French) http://www.lepoint.fr/actualites-economie/2008-06-26/une-legende-du-monde-des-affaires-parle/916/0/255995 --------------------------- "You need a strategy, but it must be flexible, it is the instinct that tells us when to change strategy. Both are important but we can't have one without the other." " Il faut avoir une stratégie, mais il faut qu'elle soit souple, c'est l'instinct qui nous dit quand il faut changer de stratégie. Les deux sont importants mais on ne peut pas avoir l'un sans l'autre. " Paul Desmarais Sr. The_Hidden_Empire_of_Paul_Desmarais.pdf

Published on Oct 4, 2013 Billionaire Warren Buffett says fighting over the debt ceiling 'ought to be banned as a weapon' like 'nuclear bombs, too horrible to use.' His partner Charlie Munger says Buffett 'understated how awful it is' calling the practice 'deeply immoral.'

'Breaking Bad' superfan Buffett gives finale A+ http://video.cnbc.com/gallery/?video=3000204555 -------------- "So it's grade school t-ball versus the New York Yankees. Yours is just some tepid off-brand generic cola. What I'm making is classic Coke. ... Do you really want to live in a world without Coca-Cola?" Walter White

Lessons learned from Batista or How Brazil's Richest Man Lost $34.5 Billion: http://www.businessweek.com/printer/articles/157438-how-brazils-richest-man-lost-34-dot-5-billion ------------------- “You only have to do a few things right in your life as long as you don’t do too many things wrong.” Warren Buffett

Harvard magazine: Bill Gates, Inside the Gates By Walter Isaacson on Sept 20, 2013 http://harvardmagazine.com/2013/09/walter-isaacson-on-bill-gates-at-harvard

Thanks for sharing the planet money link. I find one Coke episode particularly fascinating: Episode 416: Why The Price Of Coke Didn't Change For 70 Years: http://www.npr.org/blogs/money/2012/11/13/165046113/episode-416-why-the-price-of-coke-didnt-change-for-70-years

--------------- "Success is a lousy teacher. It seduces smart people into thinking they can't lose." Bill H. Gates

Charles de Vaulx: “We Have Never Been as Cautiously Positioned” Sept 17, 2013 http://advisorperspectives.com/newsletters13/Charles_de_Vaulx.php

Meryl Witmer, Eagle Capital Partners, reveals what she's learned from Wall Street legends. http://www.cnbc.com/id/101046912?utm_source=twitterfeed&utm_medium=twitter ------------ "The greatest enemies of knowledge is not ignorance; it is the illusion of knowledge" Stephen Hawking

Brazil's Batista Says He'll Rise Again http://online.wsj.com/article/SB10001424127887323342404579077483334974894.html Now we know why he failed: the stars were not aligned... ------------ "If you look at my astrological map, this period wasn't favorable for me. The good period? It has already started, literally this month." Eike Batista, Sept 2013 WSJ interview

Rare interview: Mr. Peter Cundill, FCA, CFA, The Cundill Group March 28, 2005 http://www.bengrahaminvesting.ca/Resources/Video_Presentations/Guest_Speakers/2005/Cundill_2005.htm

Financial crisis was a 100 year storm: Hank Paulson Sept 13, 2013 CNBC interview http://finance.yahoo.com/news/financial-crisis-100-storm-hank-111850966.html Hank Paulson: Why Fannie and Freddie remain a big threat http://finance.fortune.cnn.com/2013/08/28/hank-paulson-fannie-freddie/ New documentary soon available on netflix => Hank: 5 years from the brink. Watch it for free @ http://www.youtube.com/watch?v=wxfjXWmVOnY&feature=youtu.be ------------------ “If money isn’t loosened up, this sucker could go down,” George W. Bush on the 2008 financial debacle

Charles de Vaulx On Stocks: Buying The Best House In A Bad Neighborhood: http://www.forbes.com/sites/steveforbes/2013/08/23/charles-de-vaulx-on-stocks-buying-the-best-house-in-a-bad-neighborhood/ Value Investor On China, Apple And Berkshire Hathaway:

Carvel 46: Allen & co seems to own all or part of a hundred and fifties public and private companies. Long term returns are leaked on few deals like the Colombia Pictures/Coca-Cola. It’s interesting to note that Herbert Allen Sr entered Coke 6 years before Berkshire Hathaway. Thanks to your question, I completed the article with information regarding returns and Managing directors' compensation. Allen & Co returns: “In 1997, when ESPN bought CSN for $175 million, Allen & Co. realized a 600% return on its investment. [investment period 1993-1997]” CNN Money article 2010 “In 1973 [Herbert Allen] put up $1 million of his own money and $500,000 of the firm's to buy a controlling interest in Columbia Pictures at $4 a share. […] But Allen turned the company around and sold Columbia to Coca-Cola in 1982, receiving Coke stock worth $72 for each of the Columbia shares that had cost him $4. Allen & Co. Inc. still holds all of its Coke, and each of those $4 Columbia shares is now worth $2,400 in Coke stock. Herbert Allen personally, and Allen & Co. Inc., have, so far, together made a cool half-billion dollars.“ Forbes article 1996 “Managing director Inc.'s $150 million arbitrage fund, [Paul] Gould has earned a 19% annualized return since 1979, compared with the market's 15%.” Forbes article 1996 “Not everything Allen does turns to gold, which has encouraged him to keep the firm small. Allen Value Partners, a $100 million fund for institutional investors, is being liquidated after earning an average of 12% annually for its seven years, a return Allen sheepishly calls mediocre.” Forbes article 1996 Managing directors’ compensation model: - The firm pays only nominal salaries to principals. - On every deal he or she brings in, an Allen managing director gets around 30% of the investment-banking fees they bring in after expenses are paid. - If one partner advises another on a deal, he may share the ensuing fee. - Allen & Co.'s principals, in short, are not just agents of the firm; they are personal participants in every deal they bring in.

Interesting. Thanks for sharing ajc. It's worth doing some research on the Desmarais & Baron Freres families. Groupe Bruxelles Lambert (GBLBF) is an interesting investment.

Dear readers: I decided to conduct some research into the so secretive Allen & Co. The company doesn’t offer a public website and rarely makes public statements on its activities. However, they have an impressive annualized return and run Allen & Co.'s annual conference at Sun Valley. From their Manhattan offices, they handle some of the most important business transactions in the corporate world. They seem to be behind every big deal, to some, they are The Usual Suspects. The Allen saga fascinates Wall Street, some stories have been written, so let’s try to connect the dots and get inspired by the talent and wisdom of this boutique investment bank. Below are some quotes and relevant links on Allen & Co and its managing directors. Feel free to share your thoughts and additional research on the firm and its partners. VersaillesinNY ----------------------------- Allen & Co.'s circle of competence: venture capital, underwriting, private placements and money management. Quotes: "Herbert Allen [Jr.] is not a conventional person and doesn't try to run a typical operation". Warren Buffett “Herbert Allen [Jr.] has often described that operation as featuring “circles around circles of investing.” By that he means that when an attractive place to put money surfaces, the firm invests, its people invest, Allens personally invest, until the mind reels at sorting things out.” Carol Loomis, Fortune magazine "Deals just don't get done in Hollywood unless Allen & Co. has a hand in it." Excite quote. “OVER A LONG WEEKEND, I could teach my dog to be an investment banker." “It’s tough to listen when you are talking.” Herbert A. Allen Jr “I’m the person who told Groupon not to sell to Google.” Nancy Peretsman, Managing partner, Allen & Co. "[Analysts are] fairly weak historians and very poor prognosticators. [Analysts] don't buy what they're recommending, so they immediately have a conflict of interest with their customers." Herbert A. Allen Jr. on declining to hire security analysts "My advice to a young person, especially a business school student, interested in Allen & Company is to be sure you become an interesting person. You should develop a full range of interests and not worry about a career. Instead, take courses that interest you-- statistics, philosophy and so on. Secondly, any young person who doesn't put the international world into perspective is a damn fool. Any education in today's world must incorporate some part of it outside the United States." Don Keough - Allen & Co. Chairman, to prospective Allen employees. “The press isn't invited, he punts, not because reporters and camera crews might badger the 140 or so corporate chiefs and their families and 40 institutional investors representing $1 trillion, but because "we just don't have room . . . we're bursting at the seams." Herbert A. Allen Jr. regarding the Sun Valley Conference. “Where does innovation happen: Typically not in the office thinking hard on a problem. Sometimes it’s when I wake up in the middle of the night” Enrique F. Senior – Managing partner, Allen & Co. "He has none of the bombast and fad-of-the-month that you run into the investment-banking world. It's a quiet self-confidence--but not a self-important style--that inspires confidence." Warren Buffett on Herbert A. Allen Jr. Portofolios as of June 30, 2013: Allen Holdings, Inc. largest positions: KO, BRK-A, IACI, TRIP & EXPE. Allen Investment Management LLC largest positions: AIG, BP, DELL, APC & NE. Allen Operations LLC largest positions: SCHW, WDAY, BRK-A, LOW & PG. Allen & Co. – Founded in 1922 A classic Carol Loomis article: http://money.cnn.com/magazines/fortune/fortune_archive/2004/06/28/374371/ The secretive bank: http://venturebeat.com/2008/02/20/trends-secretive-new-york-bank-allen-co-gets-into-silicon-valley-media-tech/ A must watch interview: Herbert A. Allen Jr., Gaudino Dialogues Nov 2008 - 47:09 min: Allen’s House of dreams: http://www1.iwon.com/home/careers/company_profile/0,15623,754,00.html The Snowball - chapter 2: http://usatoday30.usatoday.com/money/books/2008-10-22-excerpt-the-snowball_N.htm Tenets gets the job: http://www.upi.com/Emerging_Threats/2008/02/18/Tenet_gets_job_at_secretive_NY_bank/UPI-64181203344822/ Herbert A. Allen Jr. NYT Op-Ed: http://www.nytimes.com/2007/12/21/opinion/21allen.html 01 Jul 96 - Herbert Allen and his merry dealsters Oct 97 - Players Club - CEOs talk media at Herb Allen's Sun Valley http://www.bilderberg.org/sunvally.htm#Players The Consigliere: http://www.kenauletta.com/theconsigliere.html The Scoop: http://www.vault.com/company-profiles/commercial-banking-and-investment-banking/allen-company-llc.aspx About the founders: Wall Street people - True stories of today's masters and moguls by Charles D. Ellis: http://books.google.com/books?id=dcNMZTnEz6UC&pg=PA26&lpg=PA26&dq=charles+allen+jr+investment&source=bl&ots=ZZ_3Jh_gAX&sig=tz-jo7Bf6MPCP1lTcf7r7wB5JN4&hl=en&sa=X&ei=7bYmUoHHGK7CsATrg4CgCA&ved=0CFQQ6AEwBA#v=onepage&q=charles%20allen%20jr%20investment&f=false Herbert Allen Sr.: http://www.nytimes.com/1997/01/23/nyregion/herbert-allen-sr-88-an-early-specialist-in-corporate-takeovers.html Charles Allen Jr.: http://www.nytimes.com/1994/07/17/obituaries/charles-allen-jr-91-founder-of-investment-company-is-dead.html Greed & lawsuits in the family: http://blogs.wsj.com/law/2012/09/27/judge-dismisses-lawsuit-against-investment-banking-chief-allen/ http://www.nysun.com/new-york/fraud-is-alleged-by-heir-of-shy-midas-of-wall/68833/ http://observer.com/1998/06/haunted-by-giving-up-his-baby-philips-sues-charles-allen-family/ Allen & Co. Sun Valley technology conference: Sun Valley Daze: http://nymag.com/nymetro/movies/columns/hollywood/2905/ A Sun Valley insider's blog 2013-2009: http://mankabros.com/blogs/chairman/2013/07/11/herb-allens-sun-valley-conference-2013-day-3-the-drunkening/ Sun Valley 2013 complete guest list (Choose File/download): https://docs.google.com/file/d/0BxWnldXZ7dl6WG1hTnlUaUlRSW8/edit?pli=1 Sun Valley 2012 complete guest list: http://techcrunch.com/2012/07/13/which-moguls-are-attending-sun-valley-this-year-well-heres-the-complete-list/ Allen & Co. returns: “In 1997, when ESPN bought CSN for $175 million, Allen & Co. realized a 600% return on its investment. [investment period 1993-1997]” CNN Money article 2010 “In 1973 [Herbert Allen] put up $1 million of his own money and $500,000 of the firm's to buy a controlling interest in Columbia Pictures at $4 a share. […] But Allen turned the company around and sold Columbia to Coca-Cola in 1982, receiving Coke stock worth $72 for each of the Columbia shares that had cost him $4. Allen & Co. Inc. still holds all of its Coke, and each of those $4 Columbia shares is now worth $2,400 in Coke stock. Herbert Allen personally, and Allen & Co. Inc., have, so far, together made a cool half-billion dollars.“ Forbes article 1996 “Managing director Inc.'s $150 million arbitrage fund, [Paul] Gould has earned a 19% annualized return since 1979, compared with the market's 15%.” Forbes article 1996 “Not everything Allen does turns to gold, which has encouraged him to keep the firm small. Allen Value Partners, a $100 million fund for institutional investors, is being liquidated after earning an average of 12% annually for its seven years, a return Allen sheepishly calls mediocre.” Forbes article 1996 Allen & Co. Managing directors’ compensation model: - The firm pays only nominal salaries to principals. - On every deal he or she brings in, an Allen managing director gets around 30% of the investment-banking fees they bring in after expenses are paid. - If one partner advises another on a deal, he may share the ensuing fee. - Allen & Co.'s principals, in short, are not just agents of the firm; they are personal participants in every deal they bring in. Shelby Bonnie - Managing director since 2012 http://www.pehub.com/2012/09/25/silicon-valley-exec-shelby-bonnie-joins-allen-co/ Interview on innovation: Bonnie's profile: http://www.forbes.com/profile/shelby-bonnie-1/ Andreas L. Lazar- Managing director since 2008 Lazar's profile: http://menorcatechtalk.com/about/who-is-coming-this-year/andreas-lazar/ Gillian Munson - Managing director since 2007 http://www.adexchanger.com/yield-management-tools/metamarkets/ LeRoy Kim - Managing director since 2006 The investor: http://www.businessinsider.com/apple-wants-to-buy-pinterest-rival-the-fancy-2012-8 LeRoy Kim's profile: http://ventureforamerica.org/team/#kim Steve Greenberg - Managing director since 2002 The King of Sports Deal: http://money.cnn.com/2010/05/10/news/companies/greenberg_sports_deal_king.fortune/ Dealmakers: http://www.sportsbusinessdaily.com/Daily/Issues/2010/05/Issue-167/Sports-Industrialists/Steve-Greenberg-Becoming-One-Of-Sports-Important-Dealmakers.aspx The dealmakers: http://www.sportsbusinessdaily.com/Journal/Issues/2004/03/20040322/SBJ-In-Depth/The-Dealmaker.aspx Bill Bradley - Managing director since 2002 The book: http://www.billbradley.com/bill-bradley-bio/ Dollar Bill: http://www.nj.com/inside-jersey/index.ssf/people/bill_bradley_the_storyteller.html Herb Allen III - President since 2002 Like father, like son: http://www.vanityfair.com/business/new-establishment/2011/19-herb-allen-III Business as usual at the 2009 Sun Valley Conference: http://www.mtexpress.com/index2.php?ID=2005126836#.UiavPTZjum4 Thomas J. Khun - Managing director since 2000 ICM Behind the scenes: http://www.deadline.com/2006/07/icm-behind-the-scenes-of-project-beta-broder-deal-had-a-camp-allen-berkeley-connection/ Nancy Peretsman - Managing director since 1995 Smarter than Herbert's Dog: http://www.dyanmachan.com/peretsman.html Behind the Post’s acquisition: http://www.salon.com/2013/08/06/don_graham_says_bezos%E2%80%99s_changes_will_succeed_at_post_interview_newscred/ This Tight-Lipped Banker Opened Up: http://blogs.wsj.com/deals/2012/01/18/this-tight-lipped-banker-opened-up/ Peretsman’s profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=528981&privcapId=90371&previousCapId=30345&previousTitle=J.%20Crew%20Group,%20Inc. Dara Khosrowshahi - Vice President 1995-1998 NYT Article on Dara & Expedia: http://www.nytimes.com/2005/08/08/technology/08expedia.html?fta=y&_r=0 An interview: https://www.youtube.com/watch?v=i62VhBpF4zk Donald R. Keough – Chairman since 1993 Keough’s profile: http://www.forbes.com/profile/donald-keough/ The corporate Chieftain: http://media.irishcentral.com/documents/The_Corporate_Chieftain.pdf A must read book: http://www.amazon.com/The-Ten-Commandments-Business-Failure/dp/product-description/1591844134 Don Keough on Warren Buffett – 2:06 min: Don Keough Speech Classic Coke – 5:53 min: Walter T. O'Hara - Managing director since 1988 O'Hara's profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=41595489&privcapId=90371&previousCapId=90371&previousTitle=Allen%20&%20Company,%20Inc http://www.sportsbusinessdaily.com/Journal/Issues/2008/02/20080225/This-Weeks-News/Ex-NHL-Execs-Start-Investment-Fund.aspx John H. Josephson - Managing director since 1987 Josephson's profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=646886&privcapId=47014443&previousCapId=6857532&previousTitle=The%20Boys'%20Club%20of%20New%20York M&A: http://www.themiddlemarket.com/news/htc-beats-electronics-dr-dre-222395-1.html Richard L. Fields - Managing director since 1986 Fields'profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=540585&privcapId=7664991&previousCapId=7664991&previousTitle=Allen%20&%20Company%20LLC http://www.prnewswire.com/news-releases/musicgremlin-inc-raises-venture-round-led-by-allen--company-appoints-richard-fields-to-board-of-directors-66523232.html Enrique F. Senior - Managing director since 1982 The architect of the deal: http://www.poder360.com/article_detail.php?id_article=119&pag=1 The Cuban star: http://www.nxtbook.com/nxtbooks/et/poderosos2010/index.php?startid=48 Senior’s profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=529032&privcapId=90371 James Quinn - Managing director since 1982 Quinn’s profile: http://www.forbes.com/profile/james-quinn-2/ John Simon – Managing director since 1982 Simon’s profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=788902&privcapId=90371&previousCapId=32074&previousTitle=Neurogen%20Corp. John A. Schneider Jr. - Managing director 1977-2011 Schneider’s profile: http://investing.businessweek.com/research/stocks/people/person.asp?personId=130407133&ticker=MNDL&previousCapId=8893836&previousTitle=Mandalay%20Sports%20Entertainment%2C%20Inc. Paul A. Gould – Managing director since 1973 Gould’s profile: http://corporate.discovery.com/leadership/paul-gould/ Stanley S. Schuman – Managing director since 1970 Schuman’s profile: http://investing.businessweek.com/research/stocks/private/person.asp?personId=529016&privcapId=90371 News Corp: http://articles.philly.com/1988-08-14/business/26258420_1_triangle-publications-news-corp-cash-flow Who controls News Corp?: http://www.sfbg.com/PDFs/politics/newscorpchart1009

We are going from one "major" announcement to another: http://conversations.nokia.com/2013/09/03/the-next-chapter-an-open-letter-from-steve-ballmer-and-stephen-elop/ http://www.microsoft.com/en-us/news/press/2013/Sep13/09-02AnnouncementPR.aspx http://www.businessinsider.com/stephen-elop-returns-to-microsoft-2013-9

The Brazilian Billionaire Who Controls Your Beer, Your Condiments, and Your Whopper: http://www.businessweek.com/articles/2013-08-29/the-brazilian-billionaire-who-controls-your-beer-your-condiments-and-your-whopper#r=rss

http://seekingalpha.com/article/1617082-bill-doyle-potash-savior?source=yahoo http://www.potashcorp.com/video/30991/ "Yesterday evening, good old Bill Doyle, Potash CEO, came out with an interview answering some of the most pressing questions that investors had regarding potash. Where do you see the price, do you see Canpotex breaking apart, are you viable with sub-priced potash, is the dividend sustainable..... If you haven't watched the video, I highly recommend it. The tone was undoubtedly bullish with the CEO believing that there was no rationality in the decision made by Uralkali (URALL.PK)"