Home > News & Commentary > A Future Berkshire Hathaway? (BRK.A, BRK.B, SNS)

A Future Berkshire Hathaway? (BRK.A, BRK.B, SNS)

The Peridot Capitalist blog notes an interesting find in a recent blog article, concerning the Steak N Shake (SNS) company which appears to be modeling its strategy after a young Berkshire Hathaway (BRK.A, BRK.B).

Certainly, after so many years of success Warren Buffet has had any number of imitators, most of whom cannot succeed because they do not possess the investment acumen of the Oracle of Omaha.  It is too early to tell whether this operator of casual dining restaurants run by a young and ambitious hedge fund manager can replicate the success.  Certainly, the CEO Sardar Biglari, has begun in the right direction, after reverse-splitting the stock 1-for-20 and aggressively (but ultimately unsuccessfully) pursuing the purchase of an investment company.

The results of this new tactic seem to be paying off, as noted in the blog post the company’s financials have improved dramatically and the stock has recently doubled.  However the stock appears to be overvalued for what amounts to an experimental and unproven direction for the company.  This may be an interesting stock to watch, to see if anyone else can replicate the famed Buffet strategy.

-AH

Disclosure: No positions in any stocks mentioned

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