Inelegant Investor is a collection of real-world investing observations, focused on the edge cases that don’t show up in textbooks — restructurings, CVRs, spinoffs, and the strange outcomes that accumulate in actual portfolios. And whatever else interests me about investing. Investing isn't always pretty, it's usually quite inelegant.
Recent Series: The Portfolio Graveyard
Great piece by Nate over at Oddball Stocks detailing the recent events at First Aviation(FAVS). Basically, management is forcing outside shareholders to sell out at an arbitrary price below intrinsic value, without a shareholder vote. As a holder, I am disappointed, but like Nate, my basis is not too far above the buyout price. It’s a relatively cheap… Read More »
From the moment the first headlines crossed the wire this morning, the story has been “Berkshire Hathaway(BRKB) Buying Heinz(HNZ)” or “Buffett Buying Heinz”. That is not at all the case however. 3G Capital, a Brazilian firm known for its investments in Burger King and InBev, is buying Heinz. It will own half the equity and operate the company.… Read More »
A year ago, we questioned Eastman Kodak’s solvency, and discovered a strange world of what Donald Rumsfeld might have called “dead-enders” who believed in a pot of gold at the end of the Kodachrome rainbow despite all evidence to the contrary. One rallying cry amongst these folks was huge, multi-billion dollar patent sale that was imminent. Well, apparently,… Read More »
Bilgari Holdings(BH) Chairman and CEO Sardar Biglari has, on multiple occasions, let us all know that Biglari Holdings is a ‘jockey stock’ and that he is the ‘jockey’. It seems though, that the horse’s owners continue to resist his orders. Biglari first tried to classify the stock in February 2011, but was unsuccessful in that attempt. More recently,… Read More »
There is rampant speculation this morning after Berkshire Hathaway(BRKA) announced it had repurchased 9200 class A shares from “the estate of a long-time shareholder”. Many are reporting, irresponsibly, in our opinion, that the stake comes from David Gottesman. This makes no sense to us for two reasons. First, Mr. Gottesman, being very much alive, has no estate. Secondly,… Read More »
As an activist, Sardar Biglari has taken stakes in various companies, and, when he hasn’t gotten his way, pushed his agenda in the name of good governance. See, for example, the recent amendment by the Chairman and CEO of Biglari Holdings(BH), of his 13D on Cracker Barrel(CBRL). Emphasis is added: On August 16, 2012, BH delivered a letter… Read More »
Sardar Biglari has found a fifth person to rubber stamp his decisions. Biglari Holdings(BH) filed an 8-K yesterday noting it had added James Mastrian to its Board, increasing its size to six members. From the filing: On August 14, 2012, the Board of Directors (the “Board”) of Biglari Holdings Inc. (the “Company”) increased the size of the Board… Read More »
Cracker Barrel Old Country Store(CBRL) announced today that it had added Norman Johnson to its Board of Directors. The company proudly points out that he is the 7th new Board member added in the past 18 months. Consistent with the company’s position in response to Sardar Biglari’s campaign for a Board seat, Mr. Johnson’s business experience was, most… Read More »
If you own a house, it’s very likely you’ve purchased title insurance from Fidelity National Financial(FNF). After all, the company writes more policies than any other. Increasingly though, it’s likely that you’ve eaten at one of the company’s restaurants. Yes, you read that correctly. The company has been steadily acquiring restaurant assets, and will generate over $1.25 billion… Read More »
As a Yahoo(YHOO) shareholder, I was thrilled with the news that Marissa Mayer would become CEO. I share her engineering background, but found it difficult to explain to outsiders exactly how this changed the game for Yahoo, particularly in terms of the company’s ability to attract top engineering talent. I’ve always had a hard time convincing non-engineering management… Read More »