Leucadia (LUK)

[specuvestor]

Cyclone had a thread on this company as well: http://www.valuebuddies.com/thread-2452.html What intriqued me is why the compounding of this company lags so much behind Berkshire if they employ the same strategy

I think the answer has to do with the succession planning.

Yes it is teported that Leucadia is managed by gifted investors Ian Cumming and Joseph Steinberg.

But Ian is 74 (whos contract ends June 2015 and will not renew) and Joseph is 70 years old.

http://beta.fool.com/scavengerreport/201...lan/16459/

not sure what u mean... aren't they the equivalent of the "younger version" of Buffett and Munger if we can compare them side by side?

Berkshire bought a "float" company but Leucadia bought an investment bank. The difference in mindset is glaring enough IMHO that they are actually not comparable hence the difference in compounding. After 35 years Leucadia is ~US$10b market cap company and the founders own 10% of company.

http://www.forbes.com/sites/thestreet/20...o-buffett/

I'm not saying they are not good. But I am grasping the essence of how compounding is a glaring difference over the long term if the initial actions or ideology are just slightly different. Something of a chaos theory result, though in between u can always argue about how Leucadia has done much better in a 10 years period, depending how u capture the period..