Cracker Barrel Cracks Whip In Biglari Holdings Proxy Fight

[Parsad]

Cracker Barrel put together a pretty comprehensive response to BH's proxy fight.  Not much left to argue about!  Cheers!

 

http://sec.gov/Archives/edgar/data/1067294/000119312511290764/d249469ddefa14a.htm

[Ballinvarosig Investors]

Biglari has responded, his arrogance is breathtaking.

 

We believe in a pay-for-performance system because it best aligns the interests of management with those of the shareholders. We believe the Board, led by its Compensation Committee, has set a low bar for bonus compensation.

 

http://www.sec.gov/Archives/edgar/data/93859/000092189511002068/prrn14a07428021_11032011.htm

 

By the way, I can see why he is so eager to try and initiate change in Cracker Barrel. From a cost basis, he must be down by about $10-$15 million on his position from last quarter.

 

Since BH is likely to swing into a loss for this quarter, do you think Biglari will be returning his bonus compensation for the previous quarter, Parsad  ;D

[Parsad]

Since BH is likely to swing into a loss for this quarter, do you think Biglari will be returning his bonus compensation for the previous quarter, Parsad

 

To put this as succinctly as possible with no misunderstanding...when monkeys fly out of my butt!  Cheers!

[ragu]

Since BH is likely to swing into a loss for this quarter, do you think Biglari will be returning his bonus compensation for the previous quarter [...]

 

Couple of things:

 

1. Unrealized gains/losses won't make it to reported earnings. They will make their way through to book value though, which is what the incentive payments are based on.

 

2. The incentive payment is calculated at the end of each fiscal year and paid annually. I suspect you may be thinking of the payment for last year, which was pro-rated based on the change in book value for the last quarter of last year, consequent to the vote to approve the compensation.

 

Disclosure: I am a BH shareholder.

 

Best,

Ragu

 

 

[Green King]

why buy Biglari Holdings? when you can buy Berkshire Hathaway Inc ?

[ragnarisapirate]

why buy Biglari Holdings? when you can buy Berkshire Hathaway Inc ?

 

Capital restraints... It's a lot easier for Biglari to do 20% a year than for Buffett to do so.

 

Granted there are a lot of different variables here. Price to value being the main one.

 

And, this is coming from a guy who doesn't own a single share of BH (but, I used to).

[Green King]

why buy Biglari Holdings? when you can buy Berkshire Hathaway Inc ?

 

Capital restraints... It's a lot easier for Biglari to do 20% a year than for Buffett to do so.

 

Granted there are a lot of different variables here. Price to value being the main one.

 

And, this is coming from a guy who doesn't own a single share of BH (but, I used to).

Correct me if i am wrong.

But he his actions doesn't look like the what a young Buffett would do.  This doesn't look like its going to be like the next BRK. I looks like he is trying build a giant conglomerate. where he is going to make money through getting paid from running and controlling it.

 

 

[BargainValueHunter]

why buy Biglari Holdings? when you can buy Berkshire Hathaway Inc ?

 

Capital restraints... It's a lot easier for Biglari to do 20% a year than for Buffett to do so.

 

Granted there are a lot of different variables here. Price to value being the main one.

 

And, this is coming from a guy who doesn't own a single share of BH (but, I used to).

Correct me if i am wrong.

But he his actions doesn't look like the what a young Buffett would do.  This doesn't look like its going to be like the next BRK. I looks like he is trying build a giant conglomerate. where he is going to make money through getting paid from running and controlling it.

 

Warren Buffett is Data.

 

Sardar Biglari is Lore. 8)