Warren Buffet just shot the elephant gun...

[raptor600]

http://www.reuters.com/article/2013/02/14/berkshir...

[Birkin1932]

I am reading it right, 1% return or less for 3G and 9% return for buffet?, Buffett and Berkshire basically acting as a bank

http://seekingalpha.com/article/1186891-buffett-s-...

Edited by Birkin1932 on Friday 15th February 19:09

[davepoth]

Birkin1932 said:

I am reading it right, 1% return or less for 3G and 9% return for buffet?, Buffett and Berkshire basically acting as a bank

Sounds about right. When you can go out and buy more than half of Heinz, in cash, you are probably quite good at investing. Buffett is in for capital growth, 3G is trying to build a massive(r) food conglomerate.

[Birkin1932]

Surely if its a 9% prefered stock that's it. 9% guaranteed. Surely 3G are looking for profits growth and the increase in asset value that comes with it, whereas buffet being buffet wants guaranteed income for berkshire

[fido]

Birkin1932 said:

9% guaranteed.

You get first dibs (or dividends) over common shareholders but it's not guaranteed i.e. riskier than corporate bonds, but with the upside of share price growth.