Author Topic: BH - Biglari Holdings  (Read 1359817 times)

OracleofCarolina

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Re: BH - Biglari Holdings
« Reply #1510 on: March 23, 2015, 05:37:59 PM »
Just curious about the Lion Fund's annual returns. Anybody know what the Lion Fund did in 2009?

In the recent BH presentation, it had a figure of 19.9% , but that was only from 8/1-12/31. Seeking alpha had some numbers today for 2000-2008 and the presentation had 8/2009 going forward. Would be interesting to see how well he has done over 15 years.


vinod1

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Re: BH - Biglari Holdings
« Reply #1511 on: March 23, 2015, 07:26:46 PM »
Since the normal franchise units currently opening cost around $1.5 million to $2 million

NBL,

Could you please let me know where you got this number from? Is it your estimate? Could you give a little more color on this?

Thanks

Vinod

Sure - the number is not really an estimate, but more like my best inference from many different sources, of what a franchisee must spent to construct and open a new Steak n Shake franchise unit.  That number is drawn from the franchise disclosure documents and other places.  That may seem like a lot, but it is actually less than many comparable type restaurants (though there are some chains that have a lower cost than that too).  This is also significantly less than what a Steak n Shake unit used to cost, pre-Biglari, apparently, when it was over $2.5 million to open a new unit.

Thank you! Good to know, as it provides a check on valuation from an asset reproduction cost perspective.

Vinod
 
The fundamental algorithm of life: repeat what works. –Charlie Munger

giofranchi

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Re: BH - Biglari Holdings
« Reply #1512 on: March 24, 2015, 12:38:34 AM »
Just curious about the Lion Fund's annual returns. Anybody know what the Lion Fund did in 2009?

In the 2007 AR of the Lion Fund you can find Biglari’s investment performance since inception. Then on the recently published letter by the independent directors of BH you can find Biglari’s investment performance since 2009. That leaves 2008 out. But, given the large amount of the Lion Fund’s capital invested in S n S, I guess BH’s stock price in 2008 could be a good estimate (-12.1%).

Of course, those are out of this world numbers!

I repeat: given his 15 years track record, Biglari deserves dual-class shares that put him in full control of BH, and deserves to be paid what he is asking.

Things might change in the future… I hope they won’t! ;)

Cheers,

Gio
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT

tombgrt

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Re: BH - Biglari Holdings
« Reply #1513 on: March 24, 2015, 12:49:32 AM »
Biglari got paid $30M+ in 2014 all things considered. That is almost 4% of the current market cap.

Silly comparison but imo it stands: Would people be ok with it if Buffett got paid an extra $14 billion per year (4% of BRK's market cap)? After all, he even has a much more impressive track record than that wannabe Biglari.


I can't believe how some people don't consider his compensation pure theft of shareholders. But hey, it's your money!
« Last Edit: March 24, 2015, 12:56:47 AM by tombgrt »

giofranchi

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Re: BH - Biglari Holdings
« Reply #1514 on: March 24, 2015, 01:00:12 AM »
At the end of 2012 BH’s total investments were worth $378.6 million and the return on those investments was 69.1% in 2013. An increase in value of: $378.6 x 0.691 = $261.6 million.

Take away those $30 million we paid Biglari, and BH’s shareholders increased their investments by $261.6 - $30 = $231.6 million, which is an increase of $231.6 / $378.6 = 61.17% in 2013.

Cheers,

Gio
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giofranchi

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Re: BH - Biglari Holdings
« Reply #1515 on: March 24, 2015, 01:11:44 AM »
Truth be told, excluding the rights offering, total investment in 2013 increased 47.9% after all costs.

Cheers,

Gio
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT

frugalchief

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Re: BH - Biglari Holdings
« Reply #1516 on: March 24, 2015, 05:25:00 AM »
Just curious about the Lion Fund's annual returns. Anybody know what the Lion Fund did in 2009?

In the 2007 AR of the Lion Fund you can find Biglari’s investment performance since inception. Then on the recently published letter by the independent directors of BH you can find Biglari’s investment performance since 2009. That leaves 2008 out. But, given the large amount of the Lion Fund’s capital invested in S n S, I guess BH’s stock price in 2008 could be a good estimate (-12.1%).

Of course, those are out of this world numbers!

I repeat: given his 15 years track record, Biglari deserves dual-class shares that put him in full control of BH, and deserves to be paid what he is asking.

Things might change in the future… I hope they won’t! ;)

Cheers,

Gio

Gio,

Do you have any of the annual reports for The Lion Fund prior to 07?

giofranchi

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Re: BH - Biglari Holdings
« Reply #1517 on: March 24, 2015, 05:40:16 AM »
Do you have any of the annual reports for The Lion Fund prior to 07?

I think I have also the 2006 AR, but I must check at the office. In case I’ll send you a PM. ;)

Cheers,

Gio
« Last Edit: March 24, 2015, 05:42:52 AM by giofranchi »
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timmerjames

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Re: BH - Biglari Holdings
« Reply #1518 on: March 24, 2015, 05:42:32 AM »
Tombgrt - do you consider Todd & Todd's performance fee at berskshire theft of shareholder money?

giofranchi

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Re: BH - Biglari Holdings
« Reply #1519 on: March 24, 2015, 05:47:41 AM »
Tombgrt - do you consider Todd & Todd's performance fee at berskshire theft of shareholder money?

Ah! That is a good question! ;)

Gio
Portfolio: AAPL, AMZN, BABA, BOSS, BRK.B, FB, FFH, FIH.U, FINX, FWONA, GOOG, IBB, JPM, LBRDA, MKL, NKE, QQQ, SFTBF, SMH, TCEHY, V, XBI, XT