Chipotle Vote Proves Say-On-Pay Executive Compensation Votes Must Become Binding

As far as management teams go, the gang at Chipotle gets a lot of things right. Since the spinoff from McDonalds in 2006, Chipotle has managed to grow profits from $1.28 per share to an estimated $12.60 by the end of this year. When you increase profits almost ten-fold in under ten years, it’s probably a pretty darn good automatic indicator that you’re doing something right.

And for those of you that appreciate the process of how things get done, you can’t help but tip your cap towards how Chipotle management has generally treated shareholder capital. Chipotle has no debt, no preferred stock, no pension obligation, and hardly any encumbrances on the balance … Read the rest of this article!

Bear Stearns, Ross Perot, Underground Minerals, And That Honus Wagner Baseball Card

My weekend reading, for those of you interested:

#1. The Fall of Bear Stearns— It already seems like a lifetime ago, but for those of you who want to turn back the clock and read about the collapse of Bear Stearns in real-time, check out this August 2008 piece from vanity fair. Here’s the kind of satire you can expect from the piece:

“At Phi Kappa Wall Street, most of the frat boys are instantly recognizable. There’s the big, backslapping Irishman, Merrill Lynch, the humorless grind, Goldman Sachs, and the straitlaced rich kid, Morgan Stanley. And then, off in the corner, wearing its beat-up leather jacket and nursing a cigarette, was the

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The Beautiful Proof Of Buy-And-Hold Investing

It’s been a while, hasn’t it?

I’ll do what I can to break out the defibrillators and bring this site back to life, starting with this statistic that caught me by surprise:

“According to analyst Eddy Elfenbein, over the last twenty years, the 24 best days in the stock market accounted for the entire gain in the S&P 500. The other 99.5% of the time has been a net loss.”

Mentally, we are all programmed to think linearly: if you know that healthy American enterprises tend to produce 10% annual returns over the long haul (6.5-7% is in real returns, the other 3.0-3.5% is matching inflation), it can be tempting to imagine … Read the rest of this article!

Warren Buffett’s Unsatisfactory Response To Coca-Cola’s Executive Compensation

In an interview with CNBC yesterday, Warren Buffett got questioned about the wisdom of Coca-Cola’s compensation that could potentially dilute shareholders to the tune of $13 billion over the coming 4-5 year stretch:

Buffett, whose company is the beverage maker’s largest shareholder, called the plan “excessive” in an interview on a news channel after it was approved at the company’s annual meeting. But he said Berkshire Hathaway abstained from voting against the pay plan because he didn’t want to express disapproval of the company’s management.

Buffett also noted during the interview how difficult it can be to sit on company boards and oppose a pay plan. His son, Howard Buffett, serves on Coke’s

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Did You See David Winters’ Latest Letter To Warren Buffett About Coca-Cola?

You know how Abraham Lincoln advised that if the Supreme Court doesn’t do what you want it to do, you should keep passing the same legislation over and over again, albeit in slightly different forms until you get the right response?

David Winters of Wintergreen Advisors, a shareholder of Coca-Cola, just sent out a second letter to Warren Buffett asking him to withhold support for Coca-Cola’s upcoming compensation plan that will be voted on next month.

Here’s what Mr. Winters had to say on Marketwatch:

Dear Warren,

Over the years your conviction and passion for corporate diligence and responsibility has echoed through the American consciousness. Like Jiminy Cricket you sit on our

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