Geoff Gannon July 26, 2007

On Biglari, Breeden, and Applebee’s

Yesterday, one of The Eight Best Investing BlogsStreetinsider.com 13D Tracker, posted on Sardar Biglari’s opposition to the proposed buyout of Applebee’s (APPB) by IHOP (IHP).

Regular readers of this blog know that Mr. Biglari is both Chairman and CEO of Western Sizzlin (WSZL), a publicly traded holding company, and The Lion Fund, an investment partnership (or “hedge fund”). While at Western Sizzlin, he made a concentrated bet on Friendly’s (FRN) that paid off well. That seems to be his modus operandi – bet big and be heard.

This approach may sound similar to the one favored by many other “activist” investors – and perhaps it is, but based on what Biglari has done in his brief time at Western Sizzlin and some comments he made, I think it’s likely that (at Western Sizzlin) he will favor a more concentrated (i.e., less diversified) approach than almost all other activist investors.

That makes each mention of one of his investments a little more interesting. Generally, the more concentrated an investor’s portfolio, the more promise each position has as a source of good ideas for other investors.

Enough background – here’s the post from Streetinsider.com 13D Tracker.

Related Reading

Friendly’s To Be Acquired for $15.50 in Cash

Friendly’s CEO Resigns; Largest Shareholder Requests Seats

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