Leucadia National: 5 Guidelines for a Well Run Holding Company

When I find a company of interest and then find very little readily available information about the company, my interest is definitely increased. Leucadia National (LUK) definitely fits the bill. LUK is a diversified holding company that is the result of the vision of two men, Chairman Ian Cumming and President Joseph Steinberg. They took control of the company that is now Leucadia National in 1978 and have invested in a wide range of industries and companies with these guidelines:

Don’t overpay, no matter what the maddening crowd is up to.

Buy companies that make products and services that people need and want and provide them as cheaply as possible with consistantly high quality. Lower cost and higher quality is a relentless and never ending-task.

Earnings sheltered by NOLS are more valuable than earnings that are taxed!

Compensate employees for performance