Berkshire Hathaway: The Incomparable Compounder - [Business Breakdowns, EP. 63]
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Berkshire Hathaway: The Incomparable Compounder - [Business Breakdowns, EP. 63]
“Here is an all-too-brief summary of Buffett’s approach: He looks for what he calls “franchise” companies with strong consumer brands, easily understandable businesses, robust financial health, and near-monopolies in their markets, like H & R Block, Gillette, and the Washington Post Co. Buffett likes to snap up a stock when a scandal, big loss, or... See more
Benjamin Graham • The Intelligent Investor Rev Ed.: The Definitive Book on Value Investing
Mars–Wrigley acquisition structure, conservative capital deployment, and Berkshire’s crisis-era financing of durable consumer brands
TRANSCRIPT
So it goes down in the middle of the financial crisis. They announce the deal in April 2008, but it closes in October 2008, like right after Lehman collapses.
Mars buys the Wrigley Company for $23 billion. Which is a 28% premium to where it was trading that day. Yep. And even Mars at this point in time, doesn't have 23 billion of cash on hand. Well,
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Warren Buffett in a Nutshell
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