wescobrk

Whoever wrote this article said it is coming from two investors. 5 min of research would have revealed where the money came from.

So is the whole point of this that Biglari is upset that no one can figure out the financials due to the consolidation of his investment partnership and this makes the financials "clean" again? He'll go from having a $415 million market cap with $400 million in BV to $440.5 million in BV even though nothing has changed" Market cap is almost 600 million. There still are 1.43 million shares outstanding.

If my understanding is correct all investments (partial ownership) will be managed through the Lion Fund I & II. Sardar bought back the General Partner ownership, so he will earn the 25% above 6% hurdle rate, with no maximum cap. Moreover the old incentive agreement will be applicable only to the book value of the operating subsidaries (excluding the Lion Fund). Full disclosure: BH is 5% of my PTF. " I haven't had a chance to read it. It seems to be a bit obscure for the average shareholder to figure iut especially since this is the third iteration. I got the part about no cap and saw the new 13d with cracker barrel going to lion fund 2. What happens with the change in book value of steak n shake and future subsidiary's? Does sardar still get up to 10 million for that too?

What's up with the rights offering? Isn't the turnaround time usually about 60 days for sec to approve? This thing was submitted first week in Feb and still no approval. Doesn't that seem odd?

I can't find the original thread so I created a new one. It's kind of funny about the tbv milestone was reached for only a few days to fall below (about 3% in pre market). Obviously this is what markets do but still amusing after so much focus on BAC reaching it. Moynihan is probably still sucking his thumb and hasn't bought back all the stock yet so he can buy more today.

At this rate, Sanjeev is going to be out a lot of money. He already is going to owe me $1 at the end of the year when BAC doesn't pay out $7 bil or more on the common. A pint too? Better pick some good stocks!" Why wait till the end of the year? I'm still not clear on returning more capital under ccar. Can they reapply and buy back more common in sept or do they have to wait till march for ccar? If the former isn't correct, why not pay up now? Thanks!

I second that. Where the hell did they get 30% from? Maybe next time it's 15% or nothing if it's a hated bank stock. Essentially there is an arbitrary put on all stocks from the regulators. The problem is there is no way to value the put. That will impede efficient allocation of capital. No doubt about that.

Sardar bought the shares to make money (and others would argue to gain votes) not to retire the shares. Maybe hellar's next article will argue the market cap is 20 million because he is adjusting for cracker barrel too.

As shown in the share count chart I attached above, the 1,433,716 is before you back out shares owned by the Lion Fund. BH common shareholders own $50.7 million of the $104 million fund and subtracting their proportion of BH share which are owned by the Lion Fund leads to the share count of 1,333,990. That makes sense or you can use 1.43 and back it out like Sardar argued. I still think market cap is an unadjusted number and I would still start with 1.43 then use analysis why it should be adjusted. This still doesn't explain why Jonathan heller is using 1.2 million shares. Wtf?

Biglari even outs in the 2010 letter to use 1.43 because GAAP doesn't make any sense

As of January 23, 2013 1,433,716 shares of the registrant’s Common Stock, $.50 stated value, were outstanding. This is at the top of the q filing

Well, no offense but I don't understand why there is so much confusion on this. This is like looking up the stock price. If people want to make adjustments in their analysis is one thing but figuring out the market cap is almost the most basic thing out there. Anyone can literally pull this up in two seconds. It's a public document. I don't understand how this can be screwed up!

Jonathan Heller is very lazy. All of his research apparently is to check yahoo finance. That guy is so lazy he can't take 2 seconds to check the sec filing.

How did you get this market cap? I see 10-Q showing that they've 1,227,928 outstanding. That comes to 466MM (yahoo shows the same). But Morningstar shows 543MM" Are you sure you are reading biglari holdings? The most recent q clearly states 1.43 million shares. Go to sec filings.

Sanjeev, For a bit light-hearted post... I'm ready for another update regarding the stock hitting tbv.:) How much longer? Maybe we'll see it with earnings next week?

This is a message from Obama that he is unhappy with anyone making more than 120k a year (that line about the government determining what is reasonable). This does absolutely nothing towards reducing the deficit. 9 billion over 10 years? We have over 75 trillion in liabilities and it is all from Medicare, Medicaid and ss. Obama said in the most recent debate that republicans (Romney) is against PBS because it raises virtually nothing rather it was more of a message of values. This is the same thing. This is Obama and him communicating a message that anything above 120k or 200k if you are single about it being unfair that they have that amount. I used to think he has been mostly reasonable but this truly is a dick move as another poster communicated.

Can Moynihan buy stock today or does he gave to wait till April 1st? As a side note, it'll be interesting to see how the stock reacts to the fed meeting minutes tomorrow. The last time the stock went down double digits. It would be nice to see if Moynihan can buy now below tbv or if he has to wait. Thanks!

My second call of no more than 5 billion (I was referring to the common) was right on the money. Parsad was wise not to take it.:)

17 of 18 passed only ally failing (no link saw flash frombloomberg)

So far no leaks. Jp leaked last year. I believe they are getting ccar results in private today. Is that correct? Public ccar is next thurs of course.

If you do happen do get into real estate, you should really read Real Estate: A Case Study Approach by William Poorvu (http://www.amazon.com/Real-Estate-Case-Study-Approach/dp/0137634838/ref=la_B001IGJM4U_1_4?ie=UTF8&qid=1362591079&sr=1-4). There is one chapter in there that is really great. Of course I can't remember the chapter number, but it's about a guy who owns 10,000 apartments and how he uses creativity and scale to keep his margins high and his properties looking nice. Really good stuff in those few pages. The book is only $0.01 used so it's hard to argue against it. Thanks! I just ordered it. Even with shipping and tax probably still cheaper than a drink at Starbucks.

Quote from: wescobrk on Today at 06:07:13 AM Has anyone read the other book he mentioned reading between the lines? If so, thoughts? I don’t know: just purchased it, after reading Buffett’s letter. I have read “Trust: Do Business with People You Can Trust” by Mrs. Rittenhouse and I liked it a lot. giofranchi Great minds think alike. I purchased the hard copy on amazon last night. I'll receive it Tues via prime. I guess it was partly rhetorical as I've never been disappointed by a book Buffett recommended although I seem to recall the book he mentioned he read about the gentleman that started state farm (had farmer in the title?) seemed me to boring but maybe that's just me. In buffets defense I don't think he recommended that one he just mentioned that he read it.

Has anyone read the other book he mentioned reading between the lines? If so, thoughts?

Still think we'll see tbv for BAC upon news of stress tests, Sanjeev?:) Even if we get to .90% tbv that is a 10% return from here.

I haven't seen a news release yet. I'm assuming we'll see Buffett's letter this Sat morning, right?