Meager Income

Pay Off Debt, Retire Comfortably on Meager Income, Win the Lottery, Not Necessarily in that Order

What Can You Buy For $5,252,722?

Posted on | September 12, 2011 | No Comments

$5,252,722 is a huge amount of money.  I dream of having half that and being able to retire comfortably, someday, maybe…  But, if you are Ted Weschler and you run a successful hedge fund (and take advantage of “carried interest”, presumably ), you use the money to bid and win two steak dinners with Warren Buffett and eventually land a job managing billions of dollars at Berkshire Hathaway.  Mr. Weschler has had great success at Peninsula Capital Advisors for over a decade.

According to the 13F filing submitted to the SEC, at the quarter ended June 30, 2011 Peninsula Capital Advisors held the following investments ?

Corporation Shares Value
CINCINNATI BELL INC NEW 19,800,000 65736000
DAVITA INC 4,300,000 372423000
DIRECTV 10,000,000 508200000
FIBERTOWER CORP 6,830,000 8196000
LIBERTY MEDIA CORP NEW 2,700,000 231525000
WSFS FINANCIAL COPR 1,500,000 59475000
GRACE WR & CO DEL NEW 10,765,600 491234000

I need to do some further research on some of these stocks.  I could be missing out on some great returns.  I don’t own any of these individuals stocks and don’t plan on initiating a position in any of them in the next 72 hours.

Now about the $5.2 million.  I checked out Glide (Mr. Buffett’s gets to choose the charity) and it seems be doing good work. I wonder though, was the $5.2 million just sitting in Ted’s bank account?  Probably not.  I believe, Ted is going to be eligible for a tax break for his donation to the charity.  Maybe the tax break will cancel out capital gains he might have incurred if he sold stock to free up the cash for the gifts.  I’m curious what his tax liability will be for the two years.  Glide, I presume will spend it unless they use it towards building their endowment.  I’m just trying to figure out the tax implications and what sort of impact the money will make as it gets shuffled around from entity to entity.  I think it is necessary to be a bit critical of Warren Buffett because he is very good at minimizing his tax liability.  After all, he is planning on giving away most of his wealth to family run (non-profit) business and the Bill & Melinda Gates foundation.  Would it be possible to get some shares sent my way?  I’d do my part to get the economy moving again.

Note to self:  It would be fun to meet Warren Buffett and have dinner with him.  I need to remember to bid next time around.  I’ll have to bid early though because the price will be way beyond what I can pay quickly.   One can always dream, right?


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