Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 7
Interesting how Warren didn’t buy it from them.
Print the post Back To Top
No. of Recommendations: 3
I'm guessing Warren thinks it is overvalued too. He might have bought it if 3G and Berk owned 100% of the company but with them owning only about 50% he can't easily gain control.

And there is this which many folks here questioned when Berkshire bought Heinz and Kraft:

from yahoo finance

But the firm's co-founder Jorge Paulo Lemann said its business model of buying strong consumer brands is facing new difficulties from upstarts.

"We bought brands that we thought could last forever," he said at the Milken Institute Global Conference earlier this year, according to Forbes. "You could just focus on being very efficient. ... All of a sudden we are being disrupted."
Print the post Back To Top
No. of Recommendations: 1
Interesting that they didn't sell it a year ago. The price sure was better. Crazy, some would say.

Lock up provisions expiring?

Jim
Print the post Back To Top
No. of Recommendations: 4
"We bought brands that we thought could last forever," he said at the Milken Institute Global Conference earlier this year, according to Forbes. "You could just focus on being very efficient. ... All of a sudden we are being disrupted."
They face precisely this issue at AB InBev.
It is discussed fairly extensively in Barrel-Aged Stout and Selling Out: Goose Island, Anheuser-Busch, and How Craft Beer Became Big Business
https://www.amazon.com/Barrel-Aged-Stout-Selling-Out-Anheuse...

Basically, they solved it by buying up a group of regional craft brewers and letting them be incubators.
Better to have internal competition than external competition.
Put another way...
By [using] self-criticism [you become] good at destroying your own best-loved and hardest-won ideas. If you can get really good at destroying your own wrong ideas, that is a great gift
-Charlie Munger
Print the post Back To Top