Decline in BH stock price

[shalab]

Separating this thread from the Sanjeev applause thread.

 

The investment manager's traits and habits are important to note. While generally it is true that how one spends ones money is upto them - in this case, the way the manager spends his money may impact the investment decisions and may also give a hint about his temperament. Having expensive car(s) and houses means one has to pay for them and the money will usually come from the shareholders. It can lead to decisions which can compromise the investors altogether. As has been the case with Madoff, one has to do one's due diligence.

 

Interestingly, BH declined today with higher than usual volume.

 

cheers!

Shalab

[Myth465]

The life style issue doesnt bother me so much. I  would prefer a Watsa, Flatts, or Buffett spendthrift type running my business but, its not a primary consern.

 

BH being down brings a smile to my face, and shows that sometimes the market can be efficient. It was down 10% earlier but is now hovering around down 5%. The real question is who is buying. Biglari is losing an important asset, high priced stock as a currency. Without it he will have to grow the old fashion way.

[UhuruPeak]

I've very much a fan (and holder) of Berkshire.

 

I believe "BH" was for "Biglari Holdings"

[turar]

Hmm, I guess I wasn't the only one who thought of "Berkshire Hathaway" when seeing "BH". Cute.

[Guest ValueCarl]

I wonder if that other narcissist, Mario Gabelli, expected such a mass exodus or if he's loading up his proverbial truck during this descent!

 

As part of my personal twelve step program which includes twelve years of aggressive buying, from which the first two were very successful trading years, prior to the last ten being continuous capital decimation regardless of how low I go, I'm ready to share a parallel story for the board's benefit. I'd like to garner their opinion about another Watsa holding tied to a CEO with an extremely lavish lifestyle hardly commensurate with the destruction of capital his shareholders have had to endure as a result of his leadership for way too long now.

 

Most specifically, would you all want this CEO's head by about now based upon the following, or would he get another lifeline tied to the most recent BOLD CLAIMS?  :-\   

 

O.K. here goes. Hi, my name is ValueCarl, and I am a (3) share owner. That's Level 3 Communications(LVLT) for those who don't know, while unfortunately, it maintains no relationship to a high flying defense communications company, Level 3 Communications, with stock symbol LLL, as far as I can tell although I've always wondered where any connections could exist!  ;D 

 

Its CEO, James Q. Crowe, is a visionary, one who seemingly amassed the greater portion of his wealth from selling high another communications company, MFS, to convict Bernie Ebbers of WorldCON on New Years Eve, 1996.

 

Without going into great historical details which include him leaving the boards of Worldcom and Qwest during semi-retirement post MFS, in order to start (3) after Bill Gates' vision of the internet which followed a presentation he gave in Scotland to Messrs Buffett and Scott, Mr. Scott being (3)'s Chairman and a Berkshire Hathaway board member, Mr. Crowe currently maintains three mansions including this one currently up for sale in Colorado.

 

http://www.5000equincy.com/

 

Of course, there remains much speculation why this CEO would sell the home closest to his corporate headquarters in Broomfield, CO., which might fit in to the discussion this thread is reviewing.

 

To date, $25 billion dollars in ongoing investment capital is standing at about $2 billion in market capitalization today.

 

Certainly, a lifestyle like that costs the RICH AND FAMOUS a hell of a lot of money!

 

And, Crowe's salary although BIG, might not be big enough, which may lead him to do or say things to his board which may not pan out while he takes more cash as identified here:

 

http://www.sec.gov/Archives/edgar/data/794323/000104746910005063/a2198696zdefa14a.htm

 

<At a special meeting of the Compensation Committee on May 6, 2010, the committee determined that additional data with respect to Core Network Services revenue growth rates, signed sales orders

 

 

and customer disconnects and erosion then available warranted a reconsideration of Named Executive Officer bonus payments for 2009 performance.

 

        After considering this information and based on a recommendation from Mr. Crowe, our chief executive officer, with respect to the Named Executive Officers other than himself, and the Compensation Committee's determination with respect to Mr. Crowe, the committee determined to award cash bonuses to our Named Executive Officers for their 2009 performance as follows:

 

 

James Q. Crowe

 

$ 800,000

Sunit S. Patel

 

$ 260,000

Jeff K. Storey

 

$ 330,000

Charles C. Miller, III

 

$ 280,000

Thomas C. Stortz

 

$ 260,000 >

       

 

For the record, the stories I've heard this man tell over the entire time period this little piggy came to market would make most men blush, and walk away saying, is his DADDY Warren E. Buffett? 

 

Greedy MEN and their THIRST for MONEY can be the anathema to poor common share owners whose interests may NOT be protected unless there are non affiliated diligent men who will act as proper gate keepers to ensure proper checks and balances are incorporated in a given company's policies and procedures.

 

Thanks for listening, and for those thinking about getting some (3), think three times and twelve years of capital destruction while you knock hard on wood!