Parsad

Perhaps the best course of action would be for someone - such as Sanj, who has spoken to Sardar in the past - to contact him and ask for more information about why he chose the name the did? I sent a letter to the board of directors yesterday. I'm sure it will be addressed at some point...be it beforehand or at the AGM. Cheers!

They are just merely a shadow of what they were under Templeton. For the last ten years they have been run like any other mutual fund company. Cheers!

Would it be wrong to have a mutual fund named after yourself? Is it inherently bad for Yacktman Asset Management to have a fund called the Yacktman fund? Does that somehow set the wrong tone such that Donald Yacktman will ignore his obligations as a fiduciary to his shareholders? I don't think so. What about Ford Motor Company? When Henry Ford named the company after himself, it became his palette to paint on, and he ran it pretty well thereafter. Not that he wouldn't have done so if it hadn't been named after himself! What about the Gates Foundation? I suppose some would argue that he won't run it in a way that maximizes value to society. He will instead run it in a way that will maximize his and his wife's legacy. But note that these two things are not mutually exclusive. You can do both at the same time. And, frankly, I think Bill Gates will be very involved to make sure that things are on the up and up at the Gates Foundation because his name will be there for however long the institution lasts. All those businesses originated with those names. The namesakes were also responsible for a signficant portion of the capital. My point is that it really depends on the individual circumstances surrounding a name change. I really don't think Sardar's naming the company "Biglari Holdings" is that big of a deal. Maybe it won't increase his incentives to do right by the shareholders. But the name change is being blown way out of proportion. I think it is actually a pretty big deal. I invested in Steak'n Shake under Sardar's stewardship, not Biglari Holdings. Nor did I ever expect the board to approve a name change that throws such accolades on the CEO. It's like changing the Indianapolis Colts to the Biglari Colts if Sardar was the general manager and won the Superbowl...doesn't that sound quite ridiculous? By changing names would the Colts be making perfectly clear to the world what their future goals are? Would free agents be less likely to sign with Indianapolis Colts, but more likely with Biglari Colts? Or would they just care about being taken care of and winning a Superbowl? What if Sardar gets hit by a bus...do you change the name back to "The Steak'n Shake Company"? On top of that, it's a completely unnecessary distraction to such a spectacular job they've done in the 1st Quarter. I don't think the board thought through the ramifications of this decision very clearly. Sometimes, when you have a successful CEO who has made enormous strides, you get a collegial atmosphere on the board, and they are resistant to show any sort of dissent on a decision. I think this is one of those cases. I will be sending a letter to the board of directors this week and also voting our shares against the name change. Aside from that, I firmly believe in the strategy that Steak'n Shake is employing to grow their business and fully support their initiatives. Cheers!

A name change does not necessarily change the intrinsic value of the company, but it can in certain circumstances help align the incentives of the controlling individual after whom the organization is named such that he takes extraordinary care in order to protect his individual reputation. I disagree. I think that is the wrong type of incentive. And the word "controlling" also does not apply here. The shareholders control the company, not any single individual unless they own 51%, have multiple interests that would align themselves with the CEO, control multiple voting shares, or have all of the voting shares. None of those four things apply here. Sardar will never do anything that isn't in shareholder interests, but I think this is probably something the board should have said no to, as it sets the wrong tone, and has nothing to do with increasing shareholder value. As Buffett says, if your entire net worth is invested in a company, isn't that enough to incentivize you to do the right thing? Cheers!

I agree with you valuecfa, and I even considered voting our shares against the name change (I still might), but at the same time I looked at it more objectively: If Sardar had not come along in 2008 and taken the company over, it's almost a certainty that Steak'n Shake shareholders would have been wiped out by 2011! While I certainly would never name a company after myself, I really have no problem with him doing so, since it does not affect intrinsic value in any manner. I would much prefer he keep the iconic "The Steak & Shake Holding Company" name, but that is more my sentimental side coming out and nothing more. At the end of the day, it's almost irrelevant what the company is called, as long as Sardar keeps doing smart things with capital. Cheers!

According to the last 13-D filing by Sardar, Biglari Capital Corp (his personal company), owns 76,241 shares (pre-split), so much less than 1%. I think people will critique that naming a company after yourself, when you only own 0.5%, is probably a bit egotistical. That being said, if you assume the shareholders who own 15% of SNS via Lion Fund, WEST, Mustang, etc still support him (I see absolutely no reason why not), then this is his baby to roll with and everyone wants to enjoy the ride...me included! Cheers!

Blackrock has filed a 13-G stating that they now have a 6.8% stake. Cheers! http://www.sec.gov/Archives/edgar/data/93859/000108636410008621/thesteaknshakeco123109.txt

While I have not gotten far enough to see if it was a result of the credit line being tapped for the investments. Nope, same as at fiscal year-end of $18.5M. Cheers!

Fairfax will release earnings after the close on Thursday, February 18, 2010, with the conference call following the next morning on the 19th. Cheers! http://www.fairfax.ca/Assets/Downloads/Press/fpr2010-01-29.pdf

Parsad - 1 Million gain from investments off $8 million base (cost basis). Any idea what makes that up. I am assuming ITEX and FMMH, anything else? No idea. They would have had to file on ITEX, as Sardar would be over 10% control regardless of it being in WEST or SNS. Whatever it is, I hope it's the same stuff I've been buying! ;D Cheers!

I'm not a fan of the name change...I really like "The Steak'n Shake Company"! But at the same time, his goal is to acquire other companies both public and private, so this sort of clears up who is acquiring who...for example, would a family-run private company want to be acquired by "The Steak'n Shake Company"? I'm sure it's a tribute to Berkshire, but the BH & "Biglari Holding" name just opens him up to criticism. Then again, we are talking about Sardar and he couldn't give a rat's ass what the critics think of him, as long as he's making money for shareholders and growing the businesses he acquires. Personally, I don't care either as long as he keeps doing what he's doing. I'm just blown away by how much cash he's socking away! Cheers!

I was dead-on on the net income, but boy he's really building the cash horde! $62M in cash and $9M in investments...wow! Cheers!

Isn't it rare for a company to report earnings on a Friday after the close? Seems strange to me? And why would SNS not put out an earnings release notice? Sardar already put out all the release dates for 2010 near the end of the 2009 Chairman's Letter...saves money on press releases! Cheers!

My guesses: $5.5M net income for the quarter, $58M cash, another $4M in investments, and another $2M off of assets for sale. Liquid! Cheers!

What story are you asking about? Stock price performance, ownership, history...? Cheers!

The largest single donation to a focused program in history! Cheers! http://www.cnn.com/2010/BUSINESS/01/29/davos.bill.gates.donates/index.html?hpt=T2

Steak'n Shake's quarterly results will be released after the market close today. Cheers!

I'll be attending the Berkshire AGM this year (the first time since 2005), so I thought I would set up a post where everyone can discuss any special events, functions or meetings that will happen duing the weekend. Cheers!

The only downside for Sardar if any is that there is another person who owns more SNS than he does. It's probably only an issue if Gabelli has any specific intentions. Also, I'm sure most of the shareholders who received their shares from the WEST distribution, are quite beholden to Sardar and happy to see him remain in control, thus would probably vote their shares in his favor. Most of that original 15% stake Lion Fund, WEST, etc is probably intact as far as support, and they've also bought more through Mustang, Dash, Cooley, etc since. And that doesn't even include all other shareholders whose shares only have any economic value today, because of the work they've done at Steak'n Shake in the last year and a half. Looking forward to getting my annual report! Cheers!

I've heard lots of stuff by the shorts in various places about how Sardar can't keep a manager in place. Hmmm...seems as though Duane Geiger only wants to work for Sardar! http://www.sec.gov/Archives/edgar/data/93859/000009385910000005/form8k12810.htm Also, Gabelli is now the largest single shareholder in Steak'n Shake at 7.9%. Cheers! http://www.sec.gov/Archives/edgar/data/93859/000009385910000004/form10ka2009.htm

Article on how the $5.2B expansion of the Panama Canal will cut shipping costs by 30%, and goods shipped from China (where else!) could go directly to New York, rather than offloaded in Los Angeles or Seattle and shipped over by train or truck. That's why you never overpay, regardless of any competitive advantages you see in a business. Cheers! http://www.bloomberg.com/apps/news?pid=20601089&sid=a9pi5NeBMkwk

Only one step for Buffett to go...The Dow! Cheers!

Thanks Eric! Very good stuff. Cheers!

SEC press release on two California firms who were charged with unlawful short selling. Cheers! http://www.sec.gov/news/press/2010/2010-13.htm

We recently completed our interview with Amitabh Singhi, who is director at Amrit Capital and advisor to the Amrit India Value Fund. I have known Amitabh for many years, and he's a terrific person and wonderful investor. Amitabh also sits on the advisory board for Mohnish Pabrai's Dakshana Foundation, which focuses on providing funding for world-class coaching of underprivileged Indian students, in preparation for the IIT Joint Entrance Exams. He'll also be the first Indian-based investment manager to speak at the Value Investing Congress this year. For those investors wondering about India's development in the 21st Century, alongside China as one of the more dominant economic powers, Amitabh's interview will provide some clear insights. Thanks very much to Amitabh for doing the interview! Cheers!