Biglari has big planfor Steak n Shake

[farnamstreet]

...

California money manager Mohnish Pabrai met Biglari at a Berkshire Hathaway annual meeting and came away impressed with Biglari.

 

“I think he is very passionate about what he is doing, but I get the sense that he is in a hurry,” Pabrai said. Those who are in a hurry allocating capital for investments tend to make mistakes, he said. He cited Biglari's hefty salary increase, the hostile offer for Fremont, and Steak n Shake's reverse stock split as concerns.

 

The stock split pushed Steak n Shake's shares from about $14 to about $290 in late December. The stock closed Friday at $348.26. Pabrai called the reverse stock split a “short cut” to getting the stock trading at lofty levels.

 

Biglari hopes the split will “dissuade speculators” from investing in Steak n Shake, he told investors. “We are attempting to eliminate those who erroneously think that is easier for a $10 stock to go to $20 than a $200 one to go $400.”

 

Biglari is in the office from 7 in the morning to 7 in the evening, and when he's not there, he's always thinking about how to make money for shareholders, Linnartz said.

 

“In five or 10 years, he's going to be a lot bigger than he is now,” Linnartz said, “and San Antonio is going to say, where did he come from?”

...

http://bit.ly/baxTFh

 

[keerthiprasad]

It appears that Pabrai echoes many of the thoughts felt on this board.

 

...

California money manager Mohnish Pabrai met Biglari at a Berkshire Hathaway annual meeting and came away impressed with Biglari.

 

“I think he is very passionate about what he is doing, but I get the sense that he is in a hurry,” Pabrai said. Those who are in a hurry allocating capital for investments tend to make mistakes, he said. He cited Biglari's hefty salary increase, the hostile offer for Fremont, and Steak n Shake's reverse stock split as concerns.

 

The stock split pushed Steak n Shake's shares from about $14 to about $290 in late December. The stock closed Friday at $348.26. Pabrai called the reverse stock split a “short cut” to getting the stock trading at lofty levels.