TMF Interview with Sardar Biglari

Emil Lee at The Motley Fool had an email interview with Sardar Biglari, chairman of Western Sizzlin and manager of The Lion Fund.

I highlight some points below:

  • I focus intensely on evaluating an array of situations, searching for pockets of opportunity that are within my sphere of competence.
  • Capital allocation is a matter of discovering where we can generate the highest return, adjusted for relevant risks.
  • Some firms will be growing, whereas others will not. However, the key is not growth but valuation.
  • GULP (Growth at an Unreasonably Low Price) investing could obtain truly outsized returns.
  • What is rather important, and is quantifiable, is the business's competitive advantage, which is computed by taking return on capital and subtracting cost of capital.
Article Direct Link - Sizzlin' With Sardar Biglari.

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