This means Big Larry owns around $6.4 million of UNAM, which pays a tidy $1-per-share annual dividend. So the dividend alone with UNAM brings Big Larry over a half million dollars in dividends -- plus UNAM rallied almost 17% in 2013 before pulling back in the past month or two.
So, you see, Big Larry, the CEO, likes to create what he calls "rivers of cash." If you read, and you just have to do so,
Big Larry's 2012 annual letter to shareholders, you'll learn his version of "The Genesis Story". It will thoroughly acquaint you with the BH origins and why it's been working like a well-oiled machine at making "rivers of cash" flow its way.
Below is a five-year chart of BH and some supporting fundamentals that help illustrate why the stock has been an enormous winner for shareholders.
BH data by
Since the end of 2008 the shares of BH have more than quadrupled, with remarkable revenue growth and an enviable Ebitda-EPS margin. When it reports on Monday analysts will be expecting a consensus estimated EPS growth (year-over-year) of over 17%. Sales growth and revenue are anticipated to also rise, by an undisclosed amount.
Again, I encourage you to read Big Larry's 2012 letter to shareholders. Mr. Biglari spells out the details of the holdings of BH, how much income and revenue each one is expected to bring in, and his entire investment philosophy.
It is no wonder that many have compared BH to Warren Buffett's
. Not only is BH a diversified holding company like Berkshire with easy-to-understand businesses in niche sectors, but Big Larry, as reflected in his letter to his shareholders (see below) reminds one of Buffett.
Big Larry, the chairman of the board, wrote the following on Dec. 7, 2012: "My entrepreneurial odyssey of business creation
has rested on a basic principle: to generate cash and then to parlay that cash into more cash-producing businesses. Our ideas may be in accord with those of a different era
think Warren Buffett
and quite often contrary to current corporate conventions. Irrespective of our nonconformity, we will do what we believe is right. We allow our long-range results to be the ultimate arbiter of our actions."
Talk about getting a basket of great performing companies and outstanding, visionary leadership all in one stock! Biglari Holdings is selling for over $400 a share for many good reasons, and it's no wonder the consensus one-year target estimate for the shares is $500.
Before considering shares of BH pay close attention to Monday's earnings report and do lots of careful diligence. Maybe we will get lucky and an overdue market pull-back orchestrated by the gods of Wall Street will let us buy shares on sale. If so, be ready, and
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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