Leucadia National

Leucadia has savvy management and cheap assets -- an enviable combo. Leucadia National may be the closest thing to what Berkshire Hathaway was 20 years ago, before Berkshire became so large that Warren Buffett needed investments of several billion dollars to move the needle. Run for 30 years by a secretive duo, Ian Cumming and Joseph Steinberg, Leucadia has invested in a wide variety of stocks and a diverse group of businesses. It has generated impressive returns and developed a cult-like following among value-oriented investors who like its investment style -- and results.

Everyone has heard the theory that no investor can expect to consistently beat the market over the long term; the stock market today is simply too efficient. Of course, in most cases this sentiment is correct; it is exceedingly difficult to be on the right side of the market year after year. However, there are exceptions to every rule and one exception to this investment adage is Leucadia National Corp. (LUK). To be fair, LUK does not outpace the market every year, but over the long haul its performance is undeniable.

Leucadia's (LUK) 13-F reveals equity holdings in just 7 companies

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Hmm, looks like the credit issue is throwing up a lot of bargains! Sometime ago we wrote that Leucadia recently purchased a sizable stake in Americredit. The word is now Leucadia has boosted its stake in Americredit by a factor of 2 and currently owns 22.4% of Americredit with a group of partners.

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It appears that Leucadia National (LUK) is acquiring a 11,316,200 share stake in AmeriCredit (ACF) which represents 9.9% of AmeriCredit’s outstanding stock. AmeriCredit Corp is an auto-financing company providing financing services to retail consumers as well as dealers. Leucadia’s cost is roughly $12.9 per share, with ACF shares now trading at $11.2 per share as of market closing on Jan 16th, 2008

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Leucadia National Corporation, the holding company run by Ian Cumming and Joseph Steinberg has increased their position in Eastman Chemical Co (EMN) and has brought a new position in Lucent Technologies (LUK).

See Leucadia's holdings.

Ian M. Cumming and Joseph S. Steinberg of Leucadia have released its annual report. In 2005 Leucadia reported $1,636 million in after tax income, or $15.18 per share. Book value increased by 61.5%.  They worry about the profligate ways of our country’s fiscal policy. The trade deficit is huge and growing and represents debt to foreigners. If these creditors decide precipitously or all at the same time to exchange these markers for other countries’ markers, our big strong bustling nation is in big trouble.

Leucadia National (LUK) has delivered gains that even trump the Sage of Omaha.  Companies mired in bankruptcy and turmoil may look ugly to some investors, but to Ian Cumming and Joseph Steinberg they're downright foxy. Using their publicly traded investment firm, Leucadia National, the duo have built a reputation as master takeover artists who buy distressed companies at discount prices, revive them and sell them for hefty profits.

Leucadia National (LUK) held its annual shareholder meeting recently where Ian M. Cumming and Joseph S. Steinberg  answered questions from shareholders.

Read the 2005 shareholder meeting notes.

(Thanks to Teabone for the notes) 

Read the 2005 letter to shareholders.