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Leucadia AGM notes


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thanx for passing on those agm notes...terrific job.


i sold out of luk last year after more than 12 yrs as a shareholder, mainly because of some of the issues c&s talk about needing correction: lack of solid op businesses, high cost debt financing passive investments, large sums of money with questionable 3rd party asset mangers. now that they are re-thinking these things they are begining to look interesting again, tho i doubt as much so in the future as they did in the past.

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You're all very welcome!


By the way, I've done a rough math on what could LUK actual book value might look like. In this regard:


1- I've adjusted the JEF, ACF, Inmet Mining and Fortescue Mining actual market value.

2- I've adjusted the Fortescue note by increasing it's book value per 300 millions (Fortescue carry the liability to Leucadia at approximately 1,5 billions and LUK carry it on it's balance sheet at 200 millions).

3- I've added half of the defered tax asset that was removed from the balance sheet last year (because it is fair to assume that they will ultimately use that asset, but for conservativeness purpose, I just put back 50% of it).


I understand that I can't arrive at a precise number because of number 2 and 3 items and fair value of all the other Leucadia assets (private businesses, real estate, investment with outside managers) vary and do not reflect last quarter book value.


So, based on what is written above, LUK actual price to adjusted book value is approximately 1,1. If you want to include the full liability valuation of the Fortescue note given by Fortescue AND want to add the full tax asset removed last year, then you have an approximately 0,8 ratio.


Please do not hesitate one second if you see some mistakes in my math and want to adjust it.





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