FRT follows Warren Buffet's Lead (or did he follow ours?)
Posted by Chris Higgins on Tue, Aug 02, 2011 @ 02:38 PM
For the second year in a row, Team FRT embraced the exceptional Boston summer climate and ventured just south of the Financial District to hallowed ground for devoted hot dog enthusiasts – “Boston Speeds Famous Hot Dog Wagon”.
Ranked by the Wall Street Journal’s Raymond Sokolov as “the best of the best”, Speed’s has been a beacon for well-heeled foodies and food district workers alike since 1974. The Boston Globe recently called Speeds “Paradise in a parking lot”, and it has received rave reviews from other local reviewers and food critics.
Interestingly, a little over a week ago, one of the luminaries of the investment world took quite a shine to Boston Speeds: Warren Buffet. As the article below notes, there was even talk of a buyout which was rebuffed by the now famous owner, Greg Gale.
Anxious to know if the likes of Bershire Hathaway were taking an interest in FRT’s interests, President David Bedard engaged Mr. Gale in an open dialog about his business plans, potential improvements to existing operations, and the possibility of filing claims on behalf of Boston Speed’s investors (both now and in the future). Mr. Gale was all too happy to take Mr. Bedard’s order for 16 hot dogs and a round of sodas, but was mute on the subject of financial matters and relied on his assistant to make change and take the Team’s photo (see below).
Not to be deterred, Team FRT launched into furious consumption of the delicious offerings of the world’s best hot dog purveyor. Over lunch, plans were hatched to revive acquisition discussions in the hopes that FRT may be able to purchase a clearly undervalued asset, and in doing so, offer it in exchange for Berkshire Hathaway’s securities class action claims processing business.
TEAM FRT Performance
The outing was of course not only an opportunity for camraderie (not to mention the soiling of several dress shirts and a continuation of the firm’s relentless pusuit of arbitrage opportunities), it also provided yet another venue for Team FRT in the never-ending pursuit of excellence in yield maximization.
Much like other professional engagements by the company, Team FRT punched well above it’s collective weight, nearly obliterating Boston Speed’s short term inventory of famous (not to mention massive) hot dogs.
The results speak for themselves (see table), leaving only the questions: who’s following who’s lead? Is Buffet following Bedard? And if so, why is Bedard trailing Kirstein, Haile and Doggett in statistical performance? What was the reason for the lackluster performance by Higgins and will he make the cut for next year’s outing? Only time will tell for sure.