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Monday, May 6, 2019

Buffett Face-Tech-based Changes Between Investor Questions

Buffett Face-Tech-based Changes Between Investor Questions
(Bloomberg) - Berkshire Hathaway Inc. Some respectable food giants Kraft Heinz Co. And Amazon.com Inc. Failed to realize the capability of the Internet, only after increasing thousands of percent of the Internet is taking stock in retailers.

It was an assessment by Warren Buffett and Charles Münger of two recent bets, on Saturday they were put in an unusual situation: to answer the questions of shareholders whether there is an approach needed for change which has invested them in legends.

In Berkshire annual meeting in Omaha, Nebraska, the filter holder passed the Kraft Heinz Company booth, which contains a large bottle of tomato sauce and hot dog. Screen Buffett, 88 acts as a rough island reminder, and there is a question about whether the traditional consumer brands still have the age of internet stocks, including the latest investment in Amazon, Berkshire.

Investors want to know how Berkshire's business works to stop the risk that the world is changing rapidly because people of the group can respond. For some people, the question of strategy reminded them of the days when the dot-com bubble was broken or the financial crisis came.

"They are very relevant in their careers through a lot of turmoil," said Richard Cook, who oversees $ 335 million, including Berkshire's shares in Cook and Burnham Capital Management. "He is quite agile and now think that many of them are very dense and now they do not last long."

Buffett has long been looking for "trenches", or businesses with a long-term competitive advantage. Facing questions about the new technology and Amazon, billionaire investor accepted changing trends and said that his managers were assigned to ensure that they remain better.

Buffett, president, and chief executive officer of Berkshire, said, "The world will change dramatically." "Just imagine how many of us have changed in 54 years, we have Berkshire - and some of those changes have hurt us," he said referring to the same garment business and several shoe operations.

"But we made adjustments and we have a group, overall, from a very good business," said Buffett. "We have some things that will be completely destroyed in whatever happens in this world, but I am still a capitalist carrying a card and I believe that it is a good thing."

Craft Henz has become a headache for Berkshire. Food manufacturers reported a $ 15.4 billion retread down in February and disclosed a subpoena with the Securities and Exchange Commission. Berkshire, who reported on Saturday's results of the first quarter, was unable to record the results of Kraft Heinz, who was delaying releasing some submissions.

In the early trading on Monday, Kraft Heinz announced that it would restore some revenues and find evidence of employee errors in the purchase. Buffett said in an interview with CNBC on Monday that he knew the news from his representatives, Greg Abel and Tracey Britt Cool, and Berkshire did not expect that he would return results based on the news. He said that he remained confident in Kraft Heinz.

On Saturday, Buffett reiterated that Berkshire and 3G Capital, which participated in an agreement to build Kraft Heinz who paid a lot for the Kraft property.

Lawrence Cunningham, a professor of George Washington University Professor Lawrence Cunningham and "Berkshire Beyond Buffett" said, "The idea of ​​incorporating Berkshire and 3G into a consumer company has always confused Berkshire's shareholders and it continues." Cunningham said that the investment can still be overturned.

The packaged food giant is the only focus in Berkshire's annual shareholder's meeting. Amazon is another. Buffett had announced the investment in online retailer Jeff Bezos a few days ago, who had said that this is one of his investment, Todd Combs or Ted Weschler. Combs and Weschler have helped Berkshire to promote technology investment like Apple Inc., and Munger, 95, is praised for being "small eyes".

Google missed

Shareholders asked on Saturday to buy those technology shares which had exploded in the price last year, and whether it marked the change in Buffett's famous preferences for investment value. Buffett said that technology companies can be evaluated just like other stocks. Munger, however, admitted that Berkshire missed the opportunities, especially with Google Alphabet Inc.

Munger said, "We were sitting there sitting on my thumbs," failed to invest in Google. "Perhaps Apple is redemption."

While Buffett has praised Bezos for a long time, the effect of his duties is growing bigger and bigger