Grenville

thnks!

I am very curious! What do you mean by "restructured"? I assumed that Handler would try to keep most of the legacy LUK folks in their roles given LUK historical track record.

What happened then that causes you to think this? Sardar is in a hurry to get rich, and no one within the organization stands in his path. Shareholder pushing back on the two class voting structure? It's easy, just find a workaround like the silly licensing deal. I laughed at this! Really, how does a functioning BOD allow this? Shareholders can't effectively protect themselves if the BOD is not doing their job. With Sardar as Chairman & CEO the only potential voice against overreach is Phil Cooley. Instead of the "voice of reason", Cooley has acted like a cheerleader. Where was he when Sardar got into an argument over compensation with shareholders? Cooley was MIA. I tried several times to reach him during the shareholder revolt, all unsuccessful. I discussed the problems with Sardar for hours, but logic and reason didn't matter as there was no persuading him to temper his position. In the end, Sardar pushed his shareholder "partners" to the limit and got his 25% over 6% and agreed on a $10mm hard cap. The cap has now become a binding constraint on Sardars personal wealth, and it is only a matter of time before tortured logic is presented to justify raising it or eliminating it altogether. And the BOD will support it! Despite the pleasant sounding platitudes about respect for shareholders in this annual letters, Sardar's actions have demonstrated that his desire for personal wealth far exceeds his desire to enrich shareholders. My point to those trying to judge the IV of BH in the medium term, is that they need to factor in an elimination/increase in the cap going forward. The more difficult question is to what degree will Sardar's unchecked arrogance have on the long term IV of the firm? On this measure the potential downside is large. Arrogance has a way of bringing out the schadenfreude in others and I have witnessed first hand the breathtaking downward spiral of careers because of it. I once worked for a man who was listed on the Forbes 400. Two years later he was in the middle class after his arrogant treatment of bank regulators backfired and his S&L was put into receivership. Another boss of mine was universally considered as brilliant. He was a tenured professor at Wharton at age 28, and became one of the youngest GS partners after only four years in the business. He treated people around him with terrible arrogance, and would never allow himself to lose any argument. Four years later, he entered federal prison for mismarking his book. He was turned into the authorities by one of his own employees. (BTW, it works both ways: I also supervised an intern for two summers. He was very smart, but also humble and respectful to others. Today he enjoys life in Greenwich, CT as a hedge fund manager and is worth at least a billion dollars). Extreme examples? Yes, not every arrogant person implodes. But it is a matter of degree, since arrogance as a personality trait almost always turns out to be a net negative. With Sardar, time will tell us how much. Appreciate the color and the other stories of arrogance or lack of!

I just found the original source: http://www.jefferies.com/CMSFiles/Jefferies.com/files/Insights/JefferiesInsights_April2013.pdf

I just found the original source: http://www.jefferies.com/CMSFiles/Jefferies.com/files/Insights/JefferiesInsights_April2013.pdf

Found this on my feed, I haven't found a good way to verify it, but it seems legit: http://hereisthecity.com/2013/04/15/its-all-about-culture-not-fortress-balance-sheets/ Here's something interesting sent to clients last week by Jefferies CEO Richard Handler and President Brian Friedman. At the End of the Day, It Is All About Culture What makes a business thrive and be sustainable across cycles ? Why are some companies able to constantly reinvent themselves in an ever-changing world, while others remain complacent with products, strategies and services that worked yesterday ? Who is responsible for making sure capital expenditures, acquisitions and investments are smart, targeted, and capital and cost efficient ? Who is responsible for convincing clients and investors that the firm’s foundation is strong, honest and trustworthy ? The answers to these and countless other questions that define and determine the success of every business rest in the hands of the most vital asset within every business: the people. People across our industry speak about 'fortress' balance sheets. We all know that one weak individual guarding even the largest fort can allow the course of history to change instantly. People talk about businesses with incredible barriers to entry. Without the right people leading innovation and continuously taking smart, calculated chances, every barrier becomes porous, and even the best business models become vulnerable. How many businesses have we seen in recent years with world-class brands that were the envy of competitors ? Well, how many of those companies fell because the people entrusted as stewards were arrogant or complacent ? And then, when hope was lost, when the right team of people get together with a broken brand, often there is a rebirth and a new chapter begins. Between the two of us, we have been at Jefferies (and now Leucadia) for 33 years. We have watched the competitive landscape evolve in a multitude of directions. We live in a very competitive industry that often feels like 'the Land of the Giants'. We succeed without a trillion-dollar balance sheet, a multi-trillion-dollar over-the-counter derivatives portfolio, our name on a sports arena, ATM machines on every street corner or a reliance on massive bank deposits from individual customers to fund ourselves. We are not too big to fail and we do not have the Federal Reserve or taxpayers standing by to protect us from ourselves if we take excessive risk. We do have something that today appears to be a more valuable and scarcer resource than ever: we have a real culture of caring. Caring about our clients, caring about the value and differentiation we provide them, caring about the integrity of our profession, caring about the implicit promises we make in our work and caring about each other. We are 3,841 employee-partners around the world who have come together to form the foundation and core of Jefferies. We operate as a team and, as a firm, we greatly value the individual. None of our clients needs to do business with Jefferies (nor any other single investment banking firm or commercial bank, for that matter). The vast majority of our principal competitors believe the source of their strength and competitive position is their balance sheet or name. We believe our foundation rests primarily in our people, who are the ones who get the job done every day. Don’t get us wrong, we have tons of capabilities. Our parent company, Leucadia, is a $10-billion-market-value enterprise with less than $1 billion of parent-level long-term debt. Leucadia’s brand of 35 years of smart investing and remarkable shareholder results is wonderful to be associated with. Jefferies has a $38 billion balance sheet aimed at serving our clients. We are a full-service investment banking firm with every product and service one needs to meet your needs. All that said, our only secret weapon is our people. We will remain a strong firm so long as our culture maintains its foundation of being honest, hardworking, transparent, client focused, devoid of politics, humble, aggressive and creative. The day we rest on our enhanced balance sheet, our brand or a belief that our clients cannot do without us, that will be the day we begin our decline - and it might not be a slow one. We ask you, our clients, as our most important constituency, to remind us every day of our commitments to you and to hold us accountable to the high standards we aspire to consistently reach. Honest and timely feedback allows us to learn and, when necessary, make the right adjustments. What we ask for in return is that - if we are indeed treating you as a long-term client versus a short-term counterparty - you return the favor and treat us accordingly. It is a long race and we intend to win, in partnership with you and our 3,841 culture-bearing employee-partners. Sincerely, Rich and Brian

Found this on my feed, I haven't found a good way to verify it, but it seems legit: http://hereisthecity.com/2013/04/15/its-all-about-culture-not-fortress-balance-sheets/ Here's something interesting sent to clients last week by Jefferies CEO Richard Handler and President Brian Friedman. At the End of the Day, It Is All About Culture What makes a business thrive and be sustainable across cycles ? Why are some companies able to constantly reinvent themselves in an ever-changing world, while others remain complacent with products, strategies and services that worked yesterday ? Who is responsible for making sure capital expenditures, acquisitions and investments are smart, targeted, and capital and cost efficient ? Who is responsible for convincing clients and investors that the firm’s foundation is strong, honest and trustworthy ? The answers to these and countless other questions that define and determine the success of every business rest in the hands of the most vital asset within every business: the people. People across our industry speak about 'fortress' balance sheets. We all know that one weak individual guarding even the largest fort can allow the course of history to change instantly. People talk about businesses with incredible barriers to entry. Without the right people leading innovation and continuously taking smart, calculated chances, every barrier becomes porous, and even the best business models become vulnerable. How many businesses have we seen in recent years with world-class brands that were the envy of competitors ? Well, how many of those companies fell because the people entrusted as stewards were arrogant or complacent ? And then, when hope was lost, when the right team of people get together with a broken brand, often there is a rebirth and a new chapter begins. Between the two of us, we have been at Jefferies (and now Leucadia) for 33 years. We have watched the competitive landscape evolve in a multitude of directions. We live in a very competitive industry that often feels like 'the Land of the Giants'. We succeed without a trillion-dollar balance sheet, a multi-trillion-dollar over-the-counter derivatives portfolio, our name on a sports arena, ATM machines on every street corner or a reliance on massive bank deposits from individual customers to fund ourselves. We are not too big to fail and we do not have the Federal Reserve or taxpayers standing by to protect us from ourselves if we take excessive risk. We do have something that today appears to be a more valuable and scarcer resource than ever: we have a real culture of caring. Caring about our clients, caring about the value and differentiation we provide them, caring about the integrity of our profession, caring about the implicit promises we make in our work and caring about each other. We are 3,841 employee-partners around the world who have come together to form the foundation and core of Jefferies. We operate as a team and, as a firm, we greatly value the individual. None of our clients needs to do business with Jefferies (nor any other single investment banking firm or commercial bank, for that matter). The vast majority of our principal competitors believe the source of their strength and competitive position is their balance sheet or name. We believe our foundation rests primarily in our people, who are the ones who get the job done every day. Don’t get us wrong, we have tons of capabilities. Our parent company, Leucadia, is a $10-billion-market-value enterprise with less than $1 billion of parent-level long-term debt. Leucadia’s brand of 35 years of smart investing and remarkable shareholder results is wonderful to be associated with. Jefferies has a $38 billion balance sheet aimed at serving our clients. We are a full-service investment banking firm with every product and service one needs to meet your needs. All that said, our only secret weapon is our people. We will remain a strong firm so long as our culture maintains its foundation of being honest, hardworking, transparent, client focused, devoid of politics, humble, aggressive and creative. The day we rest on our enhanced balance sheet, our brand or a belief that our clients cannot do without us, that will be the day we begin our decline - and it might not be a slow one. We ask you, our clients, as our most important constituency, to remind us every day of our commitments to you and to hold us accountable to the high standards we aspire to consistently reach. Honest and timely feedback allows us to learn and, when necessary, make the right adjustments. What we ask for in return is that - if we are indeed treating you as a long-term client versus a short-term counterparty - you return the favor and treat us accordingly. It is a long race and we intend to win, in partnership with you and our 3,841 culture-bearing employee-partners. Sincerely, Rich and Brian

I liked the letter, but not as interesting as past letters. On another note, I've been having issues with Amazon instant video for a couple of weeks where I haven't been able to get the 5.1 audio through my ps3. It was annoying enough that I tried Netflix. The Netflix interface and experience is much nicer. The 5.1 audio also works with Netflix. I've been contacting Amazon for the last couple of weeks regarding the issue without much luck. They have given me some monetary credits for the issue, but I just want the audio. The instant video was important in convincing me to sign up for prime.

Situation developing. See Zerohedge for live feed from CBS and updated info.

Great dinner and AGM, I had an awesome time learning and meeting people. Thanks!

I'm surprised he gave a fair value on RIM. I don't think I've ever heard Prem put a value on something publicly. Has he done that before?

New creditor presentation just posted for JEF for Q1 2013: http://investor-relations.jefferies.com/file.aspx?IID=102756&FID=1001174483

I spoke to soon: LEUCADIA AND JEFFERIES ANNOUNCE 2013 AND 2014 CALENDAR OF INVESTOR AND SHAREHOLDER MEETINGS NEW YORK, April 9, 2013 – Leucadia National Corporation (“Leucadia”) and Jefferies Group LLC (“Jefferies”) today announced a calendar of investor and shareholder meetings for 2013 and 2014 for Leucadia and Jefferies. These meetings will provide a basis for Leucadia and Jefferies to communicate with shareholders and investors beyond quarterly regulatory filings. July 25, 2013 – Leucadia Annual Shareholder Meeting October 10, 2013 – Jefferies Investor Day March 4, 2014 – Combined Leucadia and Jefferies Shareholder and Investor Discussion recapping 2013 performance and giving a high-level overview of strategies and plans for 2014 May 14, 2014 – Leucadia Annual Shareholder Meeting August 7, 2014 – Leucadia Investor Day October 9, 2014 – Jefferies Investor Day “These four meetings per calendar year going forward provide an opportunity for Leucadia and Jefferies shareholders, bondholders, analysts, and counterparties to hear from senior management about financial results, the operating environment and overall corporate strategies beyond our regularly scheduled regulatory filings. We will continue to be accessible, transparent and responsive to all of our constituencies,” said Richard B. Handler, Chief Executive Officer of both Leucadia and Jefferies.

I wonder if this means that there will be no quarterly conference calls for JEF.

Press for Chamisal Stainless Chardonnay in the WSJ Weekend Edition. "Rediscover Chardonnay" http://online.wsj.com/article/SB10001424127887324000704578391052156604968.html

Saw this in the WSJ, short article linked below. Pact between Amex & WFC on Amex new product called BlueBird (prepaid cards) that they introduced at Walmart. Amex joined with Wells to get FDIC insurance on deposits through the Bluebird cards. Prepaid Cards AmEx, Wells in Card Pact http://online.wsj.com/article/SB10001424127887324105204578384823308914266.html or search google for: "Financial Briefing Book: Mar. 27"

Great video and inspiring! Thank you for posting it and thank you to Mohnish for making it and making it available for others to view.

Nice! Thanks for posting.

nice video, thanks for the link, helpful to get more color on Prem's comments from the letter

Thks for the info!

2013 AGM Date posted: July 25,2013 "As previously announced, Leucadia National Corporation (the “Company”) will hold its 2013 annual meeting of shareholders (the “Annual Meeting”) on July 25, 2013. The Company’s shareholders of record at the close of business on June 5, 2013 will be entitled to notice of the Annual Meeting and to vote upon matters to be considered at the meeting." http://www.sec.gov/Archives/edgar/data/96223/000090951813000102/mm03-2213_8k.htm The release says previously announced, does anyone know where they announced this info before?

Thanks for posting!

From another thread. Didn't know that, so I did some digging and here are some articles in regards to the bond purchase and a letter Buffett wrote to Bezos praising him for expensing stock options. It looks like the bonds were bought at Geico. "Buffett praises Amazon, then buys its debt" http://articles.chicagotribune.com/2003-04-12/business/0304120174_1_junk-bonds-warren-buffett-berkshire-hathaway "Warren Buffett Puts His Money Where His Mouth Is" http://articles.sun-sentinel.com/2003-04-08/business/0304070608_1_berkshire-hathaway-warren-buffett-amazon-com

Didn't know that, so I did some digging and here are some articles in regards to the bond purchase and a letter Buffett wrote to Bezos praising him for expensing stock options. It looks like the bonds were bought at Geico. "Buffett praises Amazon, then buys its debt" http://articles.chicagotribune.com/2003-04-12/business/0304120174_1_junk-bonds-warren-buffett-berkshire-hathaway "Warren Buffett Puts His Money Where His Mouth Is" http://articles.sun-sentinel.com/2003-04-08/business/0304070608_1_berkshire-hathaway-warren-buffett-amazon-com

Just started watching this interview with Warren Buffett. He has some interesting comments re:Amazon & Jeff Bezos at the 3min mark. http://www.pymnts.com/briefing-room/commerce-3-0/the-innovation-project-2013/warren-buffett-video/