Investing Insights: Analyzing Biglari Capital Corp.'s Q3 2022 vs. Q4 2022 13F Holdings

Biglari Capital Corp. released its Q4 2022 13F holdings, which showed some significant changes from its Q3 2022 holdings. In this article, we'll dive deeper into Biglari's holdings, analyzing the changes that took place and what they might mean for investors.

Firstly, one of the standout changes in Biglari's portfolio was its increased stake in Cracker Barrel Old Country Store (CBRL). Biglari now holds 2 million shares in the restaurant chain, worth approximately $189.48 million - a significant increase from its Q3 holdings of zero shares. This move suggests that Biglari may be bullish on CBRL's future prospects, believing that the company is well-positioned to benefit from post-pandemic consumer spending habits.

Biglari also increased its stake in Biglari Holdings Inc. (BH), the company through which Chairman and CEO Sardar Biglari controls Biglari Capital Corp. In Q4, Biglari Capital Corp. acquired over 1.3 million shares of BH, worth approximately $184.3 million - a significant increase from its Q3 holdings of zero shares. This increased stake in the parent company could indicate Biglari's confidence in the future prospects of Biglari Holdings and its subsidiaries.

Another notable increase in holdings was Biglari's acquisition of 145,700 shares of BH-A, another class of shares for Biglari Holdings Inc. This increase represents a total value of approximately $100.17 million. It's worth noting that these shares carry fewer voting rights than the common shares (which Biglari also acquired), but their increased value is still a strong indicator of Biglari's confidence in the parent company.

On the flip side, Biglari cut its holdings in Jack in the Box Inc. (JACK), selling off approximately 7.9% of its shares in the fast-food chain. The sale of nearly 1 million shares was worth approximately $6.8 million, bringing Biglari's total holding in JACK to 992,744 shares, with a total value of approximately $73.53 million.

Biglari's acquisition of 118,300 shares of Ferrari N.V. (RACE) is also worth noting, given the company's performance in recent years. It's unclear exactly why Biglari made this move, but RACE's impressive stock price increases over the past year could be a driving factor.

Other smaller changes in Biglari's portfolio included acquisitions of shares in CarMax Inc. (KMX), Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Bausch Health Cos. Inc. (BHC), and Alibaba Group Holding Ltd. (BABA). While these moves are less impactful on their own, they could signal various long-term strategies or near-term opportunities that Biglari is pursuing.

It's worth noting that these are only a few of the changes in Biglari's portfolio, and it's impossible to predict with certainty what the company's moves mean. However, analyzing these changes can help investors better understand the company's investment strategy and possibly make more informed choices with their own portfolios.

In conclusion, Biglari Capital Corp.'s Q4 2022 filings show that a lot can change in just a few months. Biglari's continued investment in its own parent company, as well as its acquisition of a significant stake in CBRL, suggests that it's confident in the future prospects of both companies. On the other hand, selling off shares in JACK could be interpreted negatively, though it's important to keep these moves in the context of Biglari's larger investment strategy. As always, investors should conduct their own research and consider their own risk tolerance before making any investment decisions.