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.
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