I was looking at Leucadia right after they announced the deal. I really like the company, but can't get comfortable with a valuation model for them. They are probably too big for me to earn outsize returns. Of course now that I've written that they'll probably go up 10x over the next three years
A similar company I was looking at this week is FirstCity Financial. Waco based co. buys distressed debt at huge discounts. Management team has been doing it since before the S&L meltdown. Love the company, love the idea, can't value it. The closest I can come to a mental model is to say it's book value growth play. Today you are buying it at 1.3x book in hopes they continue to grow at 15% a year. But unless a lightning bolt hits me, it's another pass. If they were growing book 25%+ a year, then it would be more interesting.