Carl Icahn (born 16 Feb 1936) is one of the world most
prominent corporate raider or corporate activist.
According to investopedia.com, a corporate raider is
defined as an investor who buys a
large number of shares in a corporation whose assets appear to be undervalued.
The large share purchase would give the corporate raider significant voting
rights, which could then be used to push changes in the company's leadership and
management. This would increase share value and thus generate a massive return
for the raider.
Thus management hates him while shareholder obviously loves
him.
Carl Icahn rose to prominence during the 1980s, the junk
bond era. His early days most significant deal was the hostile takeover of TWA
in the 1985. He is still very active till today with the Dell takeover being
one of his latest deal he is involced.
Attached Forbes link provides a very good summary of Carl
Icahn the man:
In addition, the below youtube video is a very simple
10minutes plus video about this man and from there you can realise some key
characteristic about him:
1) Management are the
most important. Like
Buffet and Mr Li, Icahn believes that good management is the key. Thus, the
first thing he do when he raided a company is to get rid of the management.
This is another reminder that for a successful investment strategy, choose a
good management.
2) Ruthless and
relentless with his work. Icahn definitely looks more ruthless compared to Buffet and Mr Li.
However, I don't think he is any different from Buffet or Mr Li. To me, Icahn
just shows it more than the other two. Recall what Buffet say when he took over
Salomon Brothers:
Lose money and I will forgive you, but lose even a shred or reputation
and I will be ruthless.
I'm
not saying that they are ruthless or cruel in nature but it all boils down to
they having a high expectation on their individual works.
In
addition, he like the other two, enjoys his works. Even at a ripe old age of 77
he is still doing it.
3) It is all about
value, value and value. Again, Icahn seeks to buy undervalued company but with decent business
model and quality assets. Thus again it is always about value, value and value.
Enjoy the video below folks, cheers~~~
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