Friday, February 26, 2021Volume 2, Issue 16 “I try to think of my shareholders as my partners. I try to think of the information I would want them to send me if they were running the place, and I was the
Looking For Hidden Real Estate Value at Investors Title Company
In this article, we will take a look at whether an examination of Investors Title’s real estate holdings that goes beyond the company’s SEC filings may reveal hidden real estate value not reflected in the company’s stated shareholders’ equity. Read the article for more details.
The St. Joe Company: Einhorn vs. Berkowitz
According to an article on Barron.com, David Einhorn presented a very bearish case against The St. Joe Company this morning at the Value Investing Congress. Mr. Einhorn is President of Greenlight Capital and one of the most prominent “super investors” in the value investing community. He is most well known for his early warnings forecasting the demise of Lehman Brothers. In the case of St. Joe, Mr. Einhorn is taking a position directly opposite to many other prominent value investors, most notably Bruce Berkowitz who controls 29 percent of St. Joe shares through The Fairholme Fund. Read this article for more details.
GM to Acquire AmeriCredit; Revisiting Berkowitz’s Bullish Thesis
General Motors has announced an all cash transaction to purchase AmeriCredit for $3.5 billion. AmeriCredit is an automobile financing company that was founded in 1992 and has particular expertise in non-prime lending. GM has lacked an in house financing unit since 2006 when it divested General Motors Acceptance Corporation (GMAC) which has since been rebranded as Ally Financial. Having a “captive” financing unit will allow GM to provide credit to customers who found it difficult to qualify for loans due to subpar credit. Once the acquisition is complete, AmeriCredit will also enter the leasing business which should further expand opportunities for GM to attract customers.
Buffett’s Plans for Burlington Northern May Include Rapid Expansion
Over the past week, Warren Buffett has commented on the valuation of Berkshire Hathaway shares and the logic behind issuing shares as currency to pay for part of the Burlington Northern acquisition. Mr. Buffett’s statements have helped to answer many of the questions we raised in December. The question now is whether the price tag will be justified when we look back at this deal in five to ten years. Read this article for more details.