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Insider selling at LUK


Zorrofan
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I would guess they might need the money for some personal business venture outside the leucadia realm; it looks like both steinberg and cumming cashed out about 25 million $ each. So that would be my guess. From my perspective, I cannot see anything wrong with the company quite the contrary; The insider selling is sure keeping a lid on the stock price for now...

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Zorro, where do you see a Fairholme purchase?  I though Fairholme was limited to 5%.  I remember Bruce saying there was a limit on how many shares a single external entity could own, and that was 5%, otherwise he would buy more...

 

It was mentioned in an interview done with Bruce recently. The interview mentioned that Fairholme had started buying BRK again as well. I will try and find the link to the article.....

 

cheers

Zorro

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  • 3 months later...

I would offer another take on the periodic selling by C&S. Being an old-timer, I am cognizant that I could kick the bucket at any time and that my family will be stuck with my portfolio, as it exists when I die. Thus I am forced to begin liquidating and to reinvest and reallocate so that they will be able to obtain cash when they need it and so that they will be protected from market and management risk.

 

In the case of Cumming and Steinberg, I have no confidence that their successors will be even half as good as managers and investors. So C&S must also recognize this and would liquidate at least a small percentage every year or so, in order to account for the uncertainty of the future.  This is reinforced by the fact that equity holders incur most of the risk of a company's performance and viability.

 

Finally I have learned first hand that anyone can suddenly and inexplicably drop dead, even a young person in apparent perfect health.

 

For these reasons, prudent investors must take some money off of the table periodically, except at propitious times like March, 2009, and even in that case, must be prepared to take profits fairly soon after. C&S are probably value investors in every phase of their lives and would thus be cognizant of the downside in all aspects. Such periodic sales make perfect sense in this context.

 

Regards,

Tex

 

 

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