Now, we are effectively in a lawsuit against some of the directors of Fremont, are tying to exchange shares of the company for shares Advanced Auto Parts, and now own Biglari Capital (which manages the Lion Fund). In addition, Biglari is getting a hefty incentive bonus, while being forced to buy stock on terms that I really like... plus, his intentions on being with the company should not be in doubt.
This is certainly interesting to think about, even though there isn't anything that shouldn't of been expected. If everything works out well, Biglari will own a ton of the company, float will be significantly reduced, he will have a ton of economic incentive, and shareholders will be rewarded too. Since I never thought that he was the type of guy that would sandbag shareholders because he wasn't making enough money, I do feel poorer than I did about an hour ago. With that said, I am far from angry, and don't plan on selling any of my shares; the guy does deserve to have the chance to make a ton of money- plus, it is in a way that aligns his interests with shareholders. In all likelihood, I will be a shareholder of BH for the majority of my life, and frankly, am quite optimistic about the future of the company and stock.
I think that I may not log onto google reader for a while, as I am not interested in reading the shit storm that is probably going to be coming the way of Biglari.
Don't worry, I will have my BH meeting note up early in the week- I should have ample time since I will be going out to the VIC in Pasadena and to the Wesco Meeting.
Disclosure: Long BH. Do your own research. There is no investment advice in this blog.