It’s true. I found a Holding company that has performed better since its IPO. Leucadia is run by Ian Cumming and Joseph Steinberg. They also run a holding company that has performed pretty well compared to Berkshire Hathaway. This will be the only time I ever post a chart.
This chart compares Berkshire’s Performance to Leucadia’s:
http://finance.yahoo.com/q/bc?s=LUK&t=my&l=on&z=l&q=l&c=brk-a
If you check out Leucadia’s website it is the same bland style as Berkshire Hathaway’s.
Berkshire Hathaway Website:
http://www.berkshirehathaway.com
Leucadia’s Website:
http://www.leucadia.com
Also Read Leucadia’s 2004 Letter to the Shareholders. It’s in the same easy to read style that Buffett prefers.
Letter to Shareholders:
http://www.leucadia.com/C&P%20Letters/C&P2004.pdf
As a stock, I think it’s too expensive. I’m not saying it won’t go up 50% next year but for the company to sustain its high Tangible Asset Multiple it would need to make a lot more investments which doesn’t seem to be what managment wants to do right now. This is a company to keep on your watch list for LIFE. This company has historically traded at 1.5x Tangible Book. Right now it’s about double that. Also, much of the company is in cash and that earns about 2% interest in the bank. Cash doesn’t deserve that type of multiple. So I would buy shares in this company but not for now. Perhaps in the next decade I will be making a purchase. As long as book sells at a premium I’m not interested, especially if book value stays stagnant.
Eric Schleien
zachary
teenmoney
josh4580
Carlton