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Biglari Holdings


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Mr. Biglari, along with his affiliates, and certain directors of the Company make investments in the Lion Fund (other than the amounts invested by the Company), which are not subject to special profits, interest allocations, or incentive allocations.


I'm curious, from an accounting point of view, does anyone know if the incentive fees that would have been charged for Biglari and the directors are required to show up in the proxy as (e.g., other income)? If not, why not?


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It not as much as you might think. The fees that would have been charged Biglari, affiliates and directors are not disclosed in the proxy. At the same time, it would be fairly easy to estimate. Biglari only has $2.6 million in The Lion Fund. My guess is that he would have to pay an annual management, say 1% on total assets as well as the standard incentive comp. Steak n Shake has $50MM in The Lion Fund. Since this is a consolidated entity it wouldn't make any sense charging them.

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  • 3 weeks later...

The sparring continues between CBRL and BH.

CBRL offered to buy all of Biglari's shares at market price.


Christopher1 pointed me to the very good answer by Mr. Biglari:


My desire is to see management succeed in its endeavor because

the value of our investment is predicated on leadership’s performance.


Find it in attachment.




“As time goes on I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence.” - John Maynard Keynes


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  • 1 month later...

New signage for Steak N Shake.....Sanjeev, you are going to love this


LMFAO!  Mohnish is going to bug me about this one!


Versace meets hamburgers.  Are they going to get a license to sell high end Tequila?  This is like a crazy idea that Turtle from "Entourage" gets Mark Cuban to buy into!  Cheers!

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