Thursday 8 August 2013

Icahn beating Buffett / Berkshire Hathaway over 10 years


With all the media coverage on the Herbalife, Ackman, Soros and Icahn recently I decided to investigate Icahn Enterprises (IEP) in more detail.

In particular this article got me interested to start digging further:
http://www.kiplinger.com/article/investing/T052-C000-S002-carl-icahn-better-investor-than-buffett.html

So how does Icahn Enterprises fare vs some other benchmarks?

See the table below from their June 2013 investor presentation:

Source: http://www.ielp.com/index.cfm

So is IEP worth a further look?

The next question on my mind was to see how much the CEO got paid. For investment funds and diversified holding companies the executive remuneration and/or fund manager fees play a key criteria in deciding the overall long term returns to the shareholders.

A bit of searching led me to this article:
http://money.cnn.com/gallery/news/companies/2013/08/06/one-dollar-salaries/6.html

According to the article Carl Icahn's most recent remuneration was rather modest:

Salary: $1
Stock, options, other pay: $147,559
Total pay: $147,560

I'm sure most investors would be accepting of a CEO / fund manager taking a pay of $147,560 while share performance has outperformed the market by such a large margin over time.

A few questions:

Does anyone out there have ideas on the stock? 
Would you invest in IEP over Berkshire currently? 
Comments or questions?


1 comment:

  1. Found out today Carl Icahn has been buying into Apple (AAPL). Personally been long on AAPL since a month ago as believe undervalued still.

    http://youtu.be/nWNDQ56osB4

    ReplyDelete