Can a company that fired its CEO and six Board members, with shrinking revenues, erratic profitability, impenetrable financial statements, controlled by a corporate raider, be a good investment? If you understand what is going on, you can profit from situations that scare off most investors. As Warren Buffett said this is a “time to be greedy when others are cautious”.
Fuji Deal
Carl Icahn worked his way through Princeton by playing cards with his wealthier classmates. He amassed a fortune shaking up corporate America, but hit a dry spell in the last three years, when his net worth dropped to $18.2 billion. Splitting up Xerox into its original business and a backroom processing operation was a success, earning Icahn $100 million. He has $700 million of stock, which he would be happy to sell for a billion. He might even take less, if the prospects were poor.
