Parsad

It's very smart...the merchandising should help strengthen the cult following. Good selection of merchandise as well. Cheers!

Proxy fights are not cheap. I would think this fight cost the committee a minimum of $250K and from the number of filings on EDGAR, I would think the cost was closer to $400-500K! If they had won, they could have recouped the cost from Denny's, but now they have to eat this. It was a tough battle from the start, since Denny's wasn't in a precarious position, whereas Steak'n Shake was. While Denny's management could have done a better job, they certainly weren't anywhere near running the company into the ground. They could always go after Steak'n Shake instead! ;D Cheers!

Here's an interview with Mohnish on Morningstar where he discusses checklists. You have scroll half way down to see the correct video. Cheers! http://www.gurufocus.com/news.php?id=95047

Here's a terrific little article by David Rosenberg. Cheers! http://www.theglobeandmail.com/globe-investor/investment-ideas/features/experts-podium/safety-comes-first-in-long-roller-coaster-ride-ahead/article1572229/

I'm sure when you read that title you thought Sanj posted some link to a get-rich quick scheme. Well sort of. To command such fees, all you have to do is be the daughter of a former vice-presidential candidate and get knocked up by some half-twit loser. Apparently, Bristol Palin will command $15-30K per speaking engagement in the very near and dear future. What is the world coming to? Every 16-year old girl needs a role model like this! Forget their older sister or brother, their mother or father, or even their teacher. Cheers! http://news.yahoo.com/s/ap/us_people_bristol_palin

Funny article on Steve Jobs and his ownership of Apple. The funny part is near the end about Steve Ballmer. Cheers! http://finance.yahoo.com/banking-budgeting/article/109575/steve-jobs-was-robbed;_ylt=AjDoiuinSSoPFjtnXzBO8BO7YWsA;_ylu=X3oDMTE1OHE1NG01BHBvcwM5BHNlYwN0b3BTdG9yaWVzBHNsawNob3dzdGV2ZWpvYnM-?sec=topStories&pos=7&asset=&ccode=

The shares owned by Lion Fund partners remain in the Lion Fund, but I believe Sardar's ownership through the GP would be liquidated upon the sale of Biglari Capital to Biglari Holdings...thus the $4.175M payout. Biglari Capital would continue to own the shares, but Sardar would have sold his ownership in Biglari Capital, thus liquidating his position at April 30th. Cheers!

Thank You for getting the board up and running, is there something that we can do to assist you? Thanks very much SeaIsland! No, there isn't a whole lot that can be done other than making sure software is up to date, passwords are secure and I make daily backups. I used to make weekly backups, but now I make daily ones...we lost alot of good posts during that week after the Berkshire AGM. I also completely cleaned out all files before reinstalling the database, so there was nothing...no hidden files or anything. So far, so good! Cheers!

Im basing this on Parsad's comments. I probably should have included a question mark. I should probably caveat that with if and when they complete the transaction. According to the filing: http://www.sec.gov/Archives/edgar/data/93859/000092189510000667/form8k07428_04302010.htm Pursuant to the Stock Purchase Agreement, Mr. Biglari sold all of the shares of Biglari Capital to the Company for a purchase price of $1.00 plus (i) an amount equal to Biglari Capital’s adjusted capital balance, if any, in its capacity as general partner of the Lion Fund, and (ii) an amount equal to the total incentive reallocation allocable to Biglari Capital for the period from January 1, 2010 through April 30, 2010, less any distributions in respect of such amounts previously received by Mr. Biglari. The payments set forth in clauses (i) and (ii) above represent solely those amounts that have accrued to date to Biglari Capital, as general partner of the Lion Fund, estimated at closing to be $4.175 million. The Stock Purchase Agreement contains customary representations, warranties and indemnities. Anyone who reads that would be under the impression that the deal is complete or at least is binding. That means he sold his stake in the general partnership, including all investments the general partner had in the Lion Fund (estimated at $4.175M at April 30th, 2010), for the sum of one dollar. That would include any holdings in BH he owned through the general partner. Obviously he didn't intend for the stock price to fall after putting out the compensation proposal, but usually the parasite class-action guys will try and say he did. Cheers!

If I am correct, it is still interesting information for shareholders to know or what can be held in equities at Fairfax before getting into these. I remember asking Prem this question at our lunch, and he had said it was 25%. When I brought up this number with Sam Mitchell at our dinner a couple of years ago, he said that there was no limit. I'm guessing that most states or jurisdiction have no limit, but certain states or jurisdictions do, and that may be what Prem was referring to. Anyway, it would be a good question to ask. Cheers!

Not really related to value investing, but I thought it was a worthy article about a smart, young woman. Cheers! http://static.dispatch.com/www.dispatch.com/live/content/local_news/stories/2010/05/17/hog-wildnot-this-girl.html

An article on the share price slide: http://seattletimes.nwsource.com/html/businesstechnology/2011888707_apusbiglariholdingsmover.html I would not be surprised to see litigation against the company at some point...I'm surprised the parasites haven't jumped on it already. The shares are down 23% since they announced the pay package proposal, and Biglari Capital sold all their shares before the slide. Usually, the class-action guys are all over these things at this point. Cheers!

Definitely material! I don't see anything about it in the 2009 Annual Report under the C&F info. They should talk about it and make clear exactly what happened. Cheers!

Article on changes to Berkshire's investment portfolio. Cheers! http://www.businessweek.com/news/2010-05-17/buffett-cut-kraft-stake-after-deals-he-called-dumb-update1-.html

Anyone have information on Lu's historical performance? Cheers!

They did in the past, but they stopped when Fairfax fully integrated Hamblin-Watsa. I believe the principals do receive bonuses based on their performance though. Cheers!

The Omaha World-Herald's "Warren Watch" has a number of new stories that might be of interest. Cheers! http://www.omaha.com/article/20100516/MONEY/705169913

In regards to Sardar, I don't think it would be fair at all to take away from the positive and quality things he has done. Steak'n Shake would not be around right now if it wasn't for his work and everyone else involved with Steak'n Shake after the change in control. It's definitely one of the greatest turnarounds I've seen in such a short-period of time, regardless of the new compensation package proposal he's asked for. I can't agree with him on this one signficant point...it's truly an ethical dilemma for me and there is no suitable resolution for me or him. He has to decide if it is worth the impact to his reputation...we've already decided with our feet! The one thing I've always espoused when investing is never fall in love with the CEO. You can fall in love with their actions...even their words...but they have to always back it up. It doesn't matter if it is Buffett, Prem, Eddie Lampert, Joe Steinberg or Sardar Biglari. Things can always change quickly, whether it is a direct result of management or a risk from the enterprise's own nature...you have to always pay attention. If not, you can quickly become a casualty of your own emotional quotient if you aren't careful. We've made alot of money with Western Sizzlin and especially Steak'n Shake. I don't begrudge one moment that I invested in those businesses, or the support I gave Sardar over the years...we just won't be investing alongside him going forward. During the last few years, we've also learned alot from things he's done and we'll learn more going forward. Hopefully, he'll also learn from other people as well. Cheers!

Out of curiosity why are you stopping at 15-20 million instead of like 40 million? i am just wondering is that much harder to invest if you have a fund that is 50 million versus 25 million? Thanks again. The difference between $20M and $40M is a double. That means an extra four years of compounding at 18% or 5 years at 15%. The number for the most part is somewhat arbitrary...it may be a little earlier, or it may be a little later. It will depend more on the opportunity and if it's the right fit. Eventually your investments will grow. Do you plan to pay out dividends a la Walter Schloss? Yes, more than likely as we get larger and larger over time, but probably not for many years. Cheers!

Very good letter written from Shane Parrish, of Noise Free Investments, to the Indianapolis Business Journal on BH's compensation agreement proposal. Cheers! http://www.ibj.com/bait-and-switch-at-biglari-holdings/PARAMS/article/19946

I appreciate all the support guys. We will at some point get involved in a public company. At the moment, we are growing the capital in the funds. As I've said in our letters, we will shut the funds down early and they will be open to existing partners only...most likely around $15-20M we will shut down. We plan on keeping the capital base small so that we can maintain a high level of performance for a long period of time. As I've said, I'm not in this for the money...I'm in this to put up the numbers over time...if I can...so far, so good! We are fortunate as we have fantastic partners. They really understand our mandate and what we are trying to do. At that point, and maybe earlier depending on what projects we are working on, we will move into the public company space. And I promise to hold up all the same values that Buffett or Prem have always projected and lived up to...that I will guarantee! Things with ITEX are progressing nicely. We plan on applying similar strategies in the future. But you won't see me doing the day to day operations of a business. I'm not interested in being the CEO. I like what I do and no one tells me what to do each day...I live a very happy life! I can't see why I would ever want to change that. We already have people in place to run any businesses we ever get involved with...with plenty of CEO, CFO experience...I will focus solely on capital allocation and long-term objectives. That also helps remove a bit of the conflict of interest in day to day duties between a private fund and public company, as we will continue to run the funds for a long, long time. Cheers!

Indeed Good Job Parsad. Sorry it did not turn out as well, must suck to be heavily invested and liquidate. He was fluent in value investing music and a lot of people danced on it. It actually worked out very well for us...we made about two and a half times our money in less than two years. The unfortunate aspect is BH's own loss in reputation, as well as the loss of a quality group of shareholders that would have stayed with them for the long-term, if they just followed the dictum of their role models when it came to compensation and humility. Cheers!

Hi Smazz, Click the little square box next to your address bar at the top of your browser that looks like a page ripped in half. This changes the page compatibility to the new version of Explorer and it will stop bouncing around. If you clear out your cookies each time you close your browser, this will always reset, so you'll have to click it again before posting each time. If you don't clear out your cookies, it will remember. Cheers!

Jack Byrne has returned to the Overstock.com board. I'm guessing that with OSTK returning to profitability and Patrick being right on so many facets of naked short-selling and stock manipulation, Jack has decided his son has finally listened to his advice from the past about focusing on the company. Cheers! http://finance.yahoo.com/news/John-J-Byrne-Elected-to-prnews-758898059.html?x=0&.v=1

Forbes article on Munger. Cheers! http://www.forbes.com/2010/05/12/charlie-munger-warren-buffett-markets-streettalk-berkshire-hathaway.html?partner=yahootix