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Roasting Biglari


AzCactus
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I agree. I've never been a shareholder since Biglari rubbed me the wrong way from the start. It was probably the slicked back hair............  ;D

 

So even with that, I read this as a piece written by someone with either a big chip on his shoulder or he had a huge bone to pick.

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I agree that the author may have had a bone or two to pick.  And therefore, the article is not objective.  But what is factually inaccurate?

 

I'm no defender, but here are some obvious inaccuracies / deliberately misleading comparisons -

 

* Comparing total compensation including investment incentive fees to operating earnings (which don't include investment gains).  Either include all gains in the comparison or compare operating earnings to his pay excluding Lion Fund allocation.

 

* Saying he sold BCC to BH for $4.2 million and bought it back for $1.7 million.  Reality is more like sold BCC to BH for one dollar, repurchased it for $1.7 million.

 

* Saying BH shares only gained 8% in the past five years, which ignores rights offerings which, if not exercised could be sold in the market adding to the return.  If exercised, they would also add to the return.

 

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* Comparing total compensation including investment incentive fees to operating earnings (which don't include investment gains).  Either include all gains in the comparison or compare operating earnings to his pay excluding Lion Fund allocation.

 

* Saying he sold BCC to BH for $4.2 million and bought it back for $1.7 million.  Reality is more like sold BCC to BH for one dollar, repurchased it for $1.7 million.

 

* Saying BH shares only gained 8% in the past five years, which ignores rights offerings which, if not exercised could be sold in the market adding to the return.  If exercised, they would also add to the return.

 

It's almost as if the author is repeating the Groveland talking points.

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It's not a particularly good article, and while some things are inaccurate, some of it is accurate.  I would suggest this fed off or is reporting the Groveland party line. 

 

What I'm disappointed with is not that Sardar is finally being taken to task, but that the task master leaves a lot to desire as well.  I'm not impressed by Groveland's proxy other than the fact they had the balls to do this with such a tiny stake in BH.  Cheers!

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