This is an excellent question and it goes to the key issues behind our investment.  We bought ACF because we believed there was significant value in the company through its ability to generate free cash flow.  Then we looked at ways in which we could “kill” the company – i.e., what kinds of mistakes or misfortunes could impair our investment.  In the case of ACF, we believe that in some of those scenarios – such as in run-off mode – we could get significantly higher value.  The tangible book value should start to approximate the liquidation value.  But then we look for what is not included in the tangible value, such as the time value of money (e.g., the present value of future insurance premiums) and whether the tangible values are really tangible (e.g., whether their fixed assets are fairly valued on their balance sheet).

In the worst case, we will make some pretty good money. 

I look at my Board seat as a way to protect our shareholders’ value.  It does not affect my relationships with or ability to invest in any other companies.  In fact, it expands my knowledge of related industries, from automobile lending to dealerships to insurance.  When the time comes to sell our investment, I will leave the Board.  I do not accept any compensation, such as fees or restricted stock grants.  Only my travel expenses are reimbursed.  I will only stay on the Board to help our shareholders.