Emil Lee: Please tell me about your hedge fund.

Sardar Biglari: I started Biglari Capital right after I graduated from Trinity University. Biglari Capital is the general partner to The Lion Fund, L.P., a private investment partnership. I am a value investor, and I apply the same principles in running Western Sizzlin as I do in operating The Lion Fund. I focus intensely on evaluating an array of situations, searching for pockets of opportunity that are within my sphere of competence.

This maneuver leads me to be risk-averse, concentrated, and conservative with our capital. The right occasions for investment arise when there is general misunderstanding -- and therefore mispricing -- of the worth of an asset. In other words, our plan does not revolve around using common sense -- the logic of the lemmings can be flawed -- but, rather, around good sense, which can be uncommon.