XL Media’s Salad Oil Scandal

The Salad Oil Scandal of 1963 was a crucial event in the career of Warren Buffett. In the aftermath of massive fraud, Buffett concentrated a large part of his portfolio in the stock of American Express (the victim of the scam) after its market value had dropped by more than half. For Buffett, the scandal … Continue reading XL Media’s Salad Oil Scandal

Return on (re)Invested Capital | TripAdvisor Case Study

TripAdvisor will announce its 2019 fourth quarter and full-year results in a couple of days.  The company began its life as a publicly-traded company on December 21, 2011, when it was spun-off from its parent Expedia (which itself had been spun-off Barry Diller’s IAC in 2005). Under the ticker symbol TRIP, TripAdvisor shares opened trading … Continue reading Return on (re)Invested Capital | TripAdvisor Case Study

Leucadia National Corporation

Leucadia was run by two high-quality capital allocators, known for their ability to find value-oriented investment opportunities in distressed companies. Ian Cumming and Joseph Steinberg were able to compound the equity of Leucadia during a period of over 20 years, at rate of around 20% per annum. Due to the nature of the corporate strategy, … Continue reading Leucadia National Corporation

Nugget: Adidas CFO on Capital Allocation

From the adidas 2Q2011 earnings call Q&A session, available at SeekingAlpha.com: Chris Svezia – Susquehanna Financial Group LLP "And the third question would be the use of your cash. If you keep your run rate of the declining net debt, you’re going to be net cash positive by the end of the year. Any thoughts … Continue reading Nugget: Adidas CFO on Capital Allocation