Podcast
Activist
Hosted by Marc & Ari · EN
Learn from history's greatest shareholder activists and investors. We study cases of shareholder activism and learn about successful activist strategies when dealing with an entrenched management or board. “You have to understand how the system is structured. The guy who gets to the top of the big corporations is, with notable exceptions, a political animal. He’s a survivor. He knows how to watch his back. That means hiring a number two guy that’s not as smart as him. That works for the CEO because he’s never threatened by his second in command “But think what that does to our corporates..."
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Episodes
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#4 Discussion with Barington Capital: James Mitarotonda, Gus Vlak and Starboard Value take on Darden (Olive Garden Restaurants)
Jan 1, 202503:02:13Tap to summarizeIn this episode, we sit down for a discussion with Jim and Gus of Barington Capital, and we take a deep dive into the pivotal 2013 investment in Darden Restaurants by Barington and Starboard Value. This high-profile partnership marked a turning point for the iconic restaurant chain, setting the stage for one of the most remarkable corporate transformations in recent history. We explore the strategic moves that reshaped Darden’s operations, including Starboard Value’s role in driving change through bold leadership and shareholder activism. From overhauling the board of directors to improving operational efficiency and unlocking value, this episode offers an inside look at the strategies and decisions that revitalized the company and set a new standard for corporate governance.
Transcribe →#3 Nelson Peltz’s proxy fight of the decade: DuPont
Oct 20, 202301:16:15Tap to summarizeIn this episode we study Trian’s investment in DuPont. We dig into the primary sources and read the letters Nelson Peltz and his team sent the board, and the board’s responses. DuPont was outperforming the S&P, and was not the typical activist target. Yet Trian’s team discovered some real issues hidden under the conglomerate umbrella. Despite his tenacious campaign, he lost the proxy fight against DuPont’s management. However, despite the CEO’s denial, Nelson Peltz’s intuition was correct. The company implemented many of the changes he suggested. Ultimately, the investment took a few years to pay off, but Peltz was patient and made a nice return.
Transcribe →Activist Highlights #1 | Stadium Capital Letter to Sleep Number 9/13/2023
Oct 4, 202300:38:04Tap to summarizeIn this Activist Highlights episode, we dive into Stadium Capital’s recent 13D filing (dated 9/13/2023) regarding Sleep Number (SNBR). We provide some background on Stadium Capital and Alex Seaver. We review the activist letter and break down the key points regarding how they potentially are threatening a proxy fight and requesting a seat on the board. We also shed light on Sleep Number Managment’s underperformance including instances of aggressive leveraged stock buybacks at significantly inflated prices. Despite poor performance, management and the board is extremely well compensated and continues to adjust earnings targets as they miss them over and over again. We also discuss why Sleep Number is a solid business, and how focusing on reducing R&D and other costs can push some of the mouth watering 57% gross margin to the bottom line. Join us as we explore the world of shareholder activism, delve into activist investing, and navigate the regulatory nuances of 13D filings through a thoughtful SEC disclosure analysis.
Transcribe →#2 Warren Buffett’s first takeover: Berkshire Hathaway
Jul 14, 202300:38:39Tap to summarizeIn this episode, we delve into the early days of Berkshire Fine Spinning Associates and Hathaway Manufacturing, their eventual merger forming Berkshire Hathaway, and the pivotal role played by Warren Buffett in reshaping the company's destiny. We explore the history of both entities before their merger, analyze Buffett's valuation and investment rationale, and discuss the events that enabled him to gain control and replace management. We examine the decision of Warren Buffett to invest in a failing textile mill, considering the opportunity cost to his portfolio and the potential alternatives he could have pursued. Join us as we unravel the story of the Berkshire Hathaway, exploring the profound impact it had on both Buffett's legacy and the world of investing at large.
Transcribe →#1 Carl Icahn's early activist days: Tappan Inc.
Jun 4, 202300:56:28Tap to summarizeIn this episode, we explore a pivotal moment in Icahn's career as he makes a groundbreaking investment in Tappan Inc., leaving a lasting impact on the corporate landscape. Join us as we unravel the fascinating story behind Icahn's involvement with Tappan Inc., a prominent appliance company that had fallen on hard times. Icahn, renowned for his ability to identify undervalued assets and turn them around, recognized the hidden potential within Tappan Inc. and set his sights on selling the company. Throughout this episode, we delve into the intricacies of Icahn's investment strategy, examining his meticulous research and negotiation skills. Discover how he navigated the complex dynamics of Tappan Inc.'s boardroom, working tirelessly to implement changes that led to the market recognizing the hidden value that Icahn saw. King Icahn by Mark Stevens https://www.amazon.com/King-Icahn-Biography-Renegade-Capitalist-ebook/dp/B00KCOVRD8/ref=sr_1_1?crid=1AJI1VC2LJFUL&keywords=king+Icahn&qid=1685746269&sprefix=king+icahn%2Caps%2C86&sr=8-1
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