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chickennoobiesoup

Last of the Gillette stock?


JP2205

The bulk of the P&G shares were traded tax free in exchange for 100% of the Duracell business. P&G owned Duracell and wanted to get rid of it. WB never seemed too thrilled with the P&G management, he bought in when Gillette was independent.


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JP2205

Yeah they started going in a different direction. They got rid of all the food brands. They also got rid of things like Duracell and Cover Girl makeup. Buffett generally doesn’t like to give up good businesses if they are profitable at all. But P&G has done well in their core brands and really grown them. I remember he had a beef with the Mondolez CEO because she got rid of their pizza business, which also was profitable. Buffett has no issue with the conglomerate model with all types of businesses. But most CEOs want to focus in areas where they think they have a true competitive advantage. Buffett seems to like businesses that throw off cash that he can use.