Warren Buffett - Bill Ackman Asked Warren 1 Question and Then Become a Billionaire #investing #stock

In 1998 a young Bill Ackman asked Warren Buffett an investing question at one of the annual meetings. Bill Ackman later went on to start his own hedge fund and become a billionaire himself. Pershing Square is one of the most successful hedge funds in the world.

#investing #stockmarket #learninvesting

[KuzzatAltay]

So this was the time that Bill Ackman actually needed to introduce himself to the audience?

[Khyrid]

Coke is amazing, they have a great work ethic too. In South America, they even executed low-performing employees. Fantastic!

[hlof]

Coca Cola at PE 40 in 1998 was a price that was inapproprate to buy back shares at. Since BRK AGM 1998 Coca Cola has climbed 55% and S&P 500 has climbed 320%. Buying back stocks far above intrinsic value just because "it is a good company" is not appropriate. I do not think that Buffett would have bought back BRK shares just blindly, inappropriately.

[jonathanrabbitt]

At a 40 PE, that's a bit contradictory for a company to do stock buyback. The PE implies future growth, whereas the stock buyback says the board has no good business plans for deployment of the excess capital.

[yx]

Warrent Buffett hasn’t aged the slightest bit in the past 30 years

[Cyclops]

Depends on the company and how much they're buying; for Coke it's fairly sensible at any time because they already have their manufacturing and supply chain fully built out for a saturated market. As long as they still have a budget for cost-lowering improvements and R&D to create some new drinks then there are few other options for them. Unless they have an investment arm as well that could just buy into the market for a larger return than their own stock.

[thecrabpulsar]

That's why Warren is a legend among legends

[Richard-eehv]

I used to work for Coke I ran a distributorship, backing around 1973 New York and Atlanta were talking about merging, then they broke of talking meanwhileI had bought $5, 000 worth of stock sold it to my boss, biggest mistake of of my life!

[alverzenongkhlaw]

A billionaire asking another billionaire...They both love food franchisee investment.Simple but difficult for the average joe.

[ps-ghhu]

I think bill is looking at only one side of the coin i.e. high PE. But what if Coke had really maxed out of revenue protections? No point in holding excess cash. It puts unnecessary pressure on RoE. Therefore management to avoid performance pressure bite the bullet, & decides to buy back it's own high PE stocks.

[mr]

If YOU bought shares, then you'd be underperforming most investments...

[justacinnamonbun]

Warren _"Coke & Moats"_ Buffett and I like to call him.

[YokNg]

What's 40 PE when we live in an era where PE can be in the hundreds

[DTR]

It's a great business for diabetes

[jamesdriscoll]

i love him but i wonder if he knows about all the poison they put in that crap now….

[berkit]

It's a business you can stand because it's just selling sugar water wth a lot hype !

[edrakel]

Warren Buffet loves COKE! WOW, whats this world coming to?

[certifiedday]

The best part of Coca Cola is that others pay for the diabetes costs!

[mezzmarr]

Selling sugared water, he understands that but not Bitcoin or AI.

[sangm]

KO - All those amazing profits while contributing to a very unhealthy lifestyle with its sugary and artificial concoctions.