Parsad

Hi Folks, As we are now in the proxy solicitation stage, I will be locking this topic until the end of ITEX's AGM, so as to prevent any misinformation about ITEX, the existing management or The Polonitza Group. Thanks very much! Cheers!

Hi Guys, Please no name-calling. If you are getting worked up, walk away from the thread. If I see name-calling or any sort of taunting, I'll be removing the offending poster, not just the post next time. Thanks!

On October 1st, the $24.50 buyout of Americredit was consummated and Leucadia received their $835M payout for their 24M shares. The elephant hunter is reloaded. Cheers! http://www.sec.gov/Archives/edgar/data/96223/000009622310000034/americredioct12010sc13d.htm

Hi Carl, I think you mean this video. Cheers! http://www.youtube.com/watch?v=HRa0B34jMOQ

Hi Carl, No one thinks what Cramer is doing is funny. Many of us have been talking about him and trying to get people to listen for years...longer than even Patrick...in fact, some of us informed Patrick of what was happening back in 2004 and 2005. What we found funny was Cramer being taken to task by Jon Stewart. The truth is that Cramer isn't the cog in the wheel. There are much bigger fish involved, that have far more power and capital available. Hopefully, the mockery Cramer suffers today, is the same fate that awaits these bigger fish some time in the future. Cheers!

What else is new! Cheers! http://finance.yahoo.com/news/SEC-Puts-New-Shareholder-nytimes-3339394774.html;_ylt=Ao9O_L_r161j2DpW5LrSM6G7YWsA;_ylu=X3oDMTE1OTlucmU2BHBvcwM3BHNlYwN0b3BTdG9yaWVzBHNsawNzZWNwdXRzbmV3c2g-?x=0&.v=1&sec=topStories&pos=5&asset=&ccode=

I had not seen this specific story and video before, but I thought it was pretty funny. Rehashes the feud between Jon Stewart and James Cramer that occurred in 2009, with Cramer defending himself at the end. Many of us on the old MSN Board knew Cramer was full of it, but I'm very happy that someone like Stewart made a mockery of him and took it mainstream. Cheers! http://www.youtube.com/watch?v=FP3YyJz3HsU&feature=related

I'm one of those people that believes Wal Mart has benefitted society. And here they go again. Cheers! http://articles.moneycentral.msn.com/Insurance/article.aspx?post=1811659

Article on the package: http://www.ibj.com/biglari-adjusts-controversial-pay-proposal/PARAMS/article/22632 Unfortunately, shareholders are damned if the do and damned if they don't on this vote. If they vote no, then the committee moves ahead with a future performance-based compensation plan that won't be tax deductible according to the filing. If they vote yes, then they've conceded to the compensation plan with a small adjustment to the hurdle and a cap at $10M, plus the already approved $900K salary that was granted earlier...as well the existing board remains intact. I suspect this thing will pass. Cheers!

Bloomberg reports that E-Mini trades executed by Waddell & Reed may have contributed to the May 6th “Flash Crash”. http://www.bloomberg.com/news/2010-09-30/waddell-reed-e-mini-trades-are-said-to-have-helped-trigger-may-6-crash.html Cheers!

Numbers continue to look pretty good...improving across the board. Looks like it will be a busy Christmas season. We'll see what happens after. Cheers! http://www.bloomberg.com/news/2010-09-30/north-american-rail-freight-carloads-for-sept-25-table-.html?cmpid=yhoo

As I have said in the past, I think that this is a great way to compensate executives. Previously, I just disagreed with the 4%. I would be happier with 8% and no cap, though. To me, the idea of capping what Biglari can make is completely absurd; If he triples book value by some great investment decisions in a single year, I don't see how this is only worth $10 million. I agree. I would have been happier to see a 10% hurdle and no cap. Regardless, I don't see why having extra board members is really necessary. Adding, rather than replacing board members would increase the amount of money that the company pays out. Furthermore, it seems that investors going crazy about the compensation package did the job that was necessary, and got the necessary changes made- looking back, we probably should have all bought shares in light of the freak out that market had in regards to the company. I had no intention of adding directors from my comments. I would want to replace two of the boardmembers with existing large shareholders. They failed at their job, and if I was a shareholder, I would have no need or desire to pay the existing boardmembers for their services. A couple of them need to go! Remember, the guy never claimed to be Buffett. This argument doesn't wash with me. Do we get the management we deserve, or do we earn the management we deserve? I think it's a little of both. Not only should executives be their own compliance and ethics officer, shareholders have to be demanding of them to act in such a manner. Shouldn't all executives, as well as all of us, aim for lofty objectives? Or is "just ok" good enough these days? Cheers!

The compensation plan now has a hurdle of 6% and is capped at $10M. Thanks to Shane for informing me of the filing! There is also clarification by Sardar on how the compensation plan would operate. http://www.sec.gov/Archives/edgar/data/93859/000092189510001420/def14a07428_11052010.htm I think if Sardar wants to make up with shareholders, he should probably add two large ones to the board. I think somebody from Oakstreet Capital and maybe Gabelli. The existing board did not do their job adequately and actually did harm to the company, it's reputation and shareholders. This compensation plan was not thought out properly, nor instituted in a shareholder-friendly manner. The other concern that shareholders may have is if this plan is accepted, can the company amend it five years from now and make it insanely lucrative once again? Or is the compensation plan permanently capped at $10M? Cheers!

Interesting story on former TDAmeritrade CEO, Joe Moglia, who is now a volunteer assistant coach for the Cornhuskers. He still plays bridge with Buffett and Gates. A neat story on doing what you love. Cheers! http://sportsillustrated.cnn.com/2010/writers/jon_wertheim/09/28/nebraska.asst/index.html?xid=cnnbin&hpt=Sbin

Yup! He stole it from Buffett and we stole it from Mohnish. ;D Cheers!

Hi Carl, You are correct…Cowie’s example is a generalization. Buffett’s original partnership, identical to ours, had a 6% hurdle that he had to surpass before achieving any incentive fee. Buffett also did not have any management fee. So if Buffett did well, he was paid well…if he did average, he got less than average compensation for the industry…and if he did poorly, he did not get paid at all. His incentives were aligned with his partners. Buffett within his partnership did better than any other investment manager at the time. He did not reap a 1% or 2% fee while sitting on his butt. The comparison to Berkshire Hathaway is also silly. One is a partnership structure, while the other is a corporation. The partners could pull their capital at any time on Buffett within the partnership, whereas the shareholders can never do that. It is a huge advantage! I can’t wait to see Smith’s fund, expenses and returns. For some reason, I expect it to be overwhelmingly unsatisfactory. Cheers!

Article on the Federal Reserve Bank. Cheers! http://finance.yahoo.com/banking-budgeting/article/110863/for-uncle-same-the-fed-prints-and-mints-money;_ylt=AlkUymF3oOtICAGzuY1uyVO7YWsA;_ylu=X3oDMTE1aXEyZTduBHBvcwM1BHNlYwN0b3BTdG9yaWVzBHNsawM3MGJpbGxpb25zdXI-?mod=bb-budgeting&sec=topStories&pos=3&asset=&ccode=

No, but it is by invitation. Cheers!

Terrific notes Alex! It was a terrific weekend in Chicago. I had a great time once again, especially meeting all the boardmembers before the AGM, including Alex. Mohnish was in fine form once again. The Q&A was really good this year, as you can tell by Alex's transcript. There were some very funny moments. One in particular where Mohnish was answering a question on new ideas or industries and said "It always seems to be that the mistress looks better than the wife...because it looks new...but that is not true." An older lady in front of me gave a stern look to her helpless husband who had not done anything. I met Sir John Templeton's grand niece at the AGM, and we briefly discussed Prem and Fairfax. There was some very good discussion by Mohnish on Japan as well. During the weekend, our whole family visited a Steak'n Shake. The food was good. The chicken patty in their chicken burgers is now as good as the steakburger. I still don't like the skinny fries, but they do have a fan base. The shakes were terrific as are their specialty burgers! The salads look pretty good. The prices are still amazing at Steak'n Shake, and the place was really busy for the whole hour and a half we were there. It is a fantastic franchise! If you are in Chicago, enjoy the deep dish pizza at Giordanos. The Macy's in Chicago is bigger than the one in Manhattan, and is the second largest department store in the world after Harrods. It was my Mom's birthday, so we took her and my aunt to "The Drake Hotel" for afternoon tea...well worth the money! Chicago is a beautiful city! I always really enjoy my visit and will go back often. Cheers!

Here are some photographs of Buffett in China. Cheers! http://www.cnbc.com/id/39399261

Zerohedge has a summary of the various speakers at the Ira Sohn Conference. Cheers! http://www.zerohedge.com/article/ira-sohn-research-conference-summary

Good article on Buffett, Berkshire and the S&P derivatives contracts. Cheers! http://www.theglobeandmail.com/report-on-business/rob-magazine/has-warren-buffett-gone-bonkers/article1719266/

The TSX requires the gross number of shares outstanding, including treasury shares held by Fairfax, in the press release. For the purposes of the financials, they take out the treasury shares they hold. Cheers!

Looks terrific! Excellent blend of style and nostalgia. Cheers!

Mary Schapiro says that the SEC may impose regulations on high-frequency trading firms. I believe they will have to reduce the number of monitors on every desk to 8 from the average of 16! ;D Everyone remember that Adam Sender picture with like 20 monitors around him. Cheers! http://www.bloomberg.com/news/2010-09-22/schapiro-says-sec-will-weigh-restrictions-on-high-frequency-trading-firms.html http://dealbreaker.com/_old/images/thumbs/adamsenderbloombergsmall.jpg