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Chapter 6. Growing Mushrooms: The Art of the Opaque, Sneaky, and Buried - Pg. 59

59 Chapter 6. Growing Mushrooms: The Art of the Opaque, Sneaky, and Buried "In 2000 and 1999, Enron entered into transactions with limited partnerships (the related party) whose general partners' managing member is a senior officer of Enron." --among footnotes to the Enron annual financial statement issued April 2, 2001 In his memoir, Benjamin Graham recalls traveling from New York City overnight in a Pullman berth and then taking a rickety local train on a bitterly cold and snowy morning to attend the annual meeting of Northern Pipeline in Oil City, Pennsylvania. It was 1927. Graham, who is widely regarded as the father of modern securities analysis and who taught Warren Buffett, wanted to propose that the company sell a huge slab of railroad bonds it owned and distribute the cash to shareholders. The problems he was about to encounter contain lessons for investors three quarters of a century later, as we shall see. Graham's plan, which would unlock hidden value for the company's shareholders, had already been