Ian Cumming and  Joseph Steinberg of Leucadia have just released their 2012 annual letter to shareholders. This is their first letter since the firm was acquired by Jefferies and it is their last one… The leucadia shareholder letter is titled, full content below (see also Leucadia Rare Letter from 2003 Uncovered and Another Rarity: Leucadia Shareholder Letter from 2002:

leucadia shareholder letter

Forty-three years ago, the two of us met at Harvard Business School and thirty-five years ago was the beginning of a remarkable partnership — the results of which are tabulated on the opposite page. The end of 2012 marks the end of this partnership and the last letter from the two of us. In terms of financial results and as “LUK” would have it, 2012 was also our most successful year.

Earnings before tax for 2012 were $1.371 billion, a record. As the years sped by and we got older, a succession plan became more and more essential. For several years, we argued, explored many alternatives, argued some more and spoke with anyone and everyone we believed worthy of our shareholders’ trust to guide the good ship Leucadia. On March 1, 2013 our succession plan culminated with the acquisition of the Jefferies Group, Inc.

Jefferies very able leadership team, Rich Handler and Brian Friedman, have become the CEO and President of Leucadia and one of us assumed the role of Chairman and the other is rolling up his sleeves to start again, this time with family as his partners. The rationale for the acquisition and the succession plan were spelled out in the proxy statement sent to you prior to the Shareholders Meeting at which 81% of our shareholders voted, with over 99% in favor. We are gratified with that vote of confidence.

Leucadia usually flies below the radar and is often unconventional in its choice of investments. We have always preferred to make money, rather than headlines.

leucadia shareholder letter full letter in scribd:

H/T Corner of Berkshire & Fairfax

Leucadia Shareholder Letter Final 2012 by ValueWalk.com