Buffett’s Search for Sure Thing Propels 76-Year Junk Food Quest – Bloomberg 08-26-14

Salient to Investors:

  • Warren Buffett says no business has ever failed with happy customers and said in 2012 that more people will be drinking Coca-Cola 10 years from now, or chewing Wrigley’s gum. Suzie Buffett said her father’s food investments mirror his tastes.
  • Tony Scherrer at Smead Capital Mgmt said Warren Buffett can look into the future with fast-food chains and candy and soda companies and not have to wonder if they’re going to be doing great things – generations to come will be eating Mars candy bars.
  • Dean Ornish at the University of California San Francisco said Coca-Cola and the red meat in Burger King’s Whopper are among the biggest contributors to obesity-related illnesses. Ornish said red meat increases the risk of premature death from heart disease as well as cancer. Harvard School of Public Health said regular consumption of sugary drinks increases the risk of developing type-2 diabetes by 26 percent.
  • Richard Cook at Cook & Bynum Capital Mgmt owns Berkshire Hathaway and Coca-Cola but said hunger for healthier food may hurt Buffett’s fast-food bets. Cook sees a real risk that the societal belief that sugar is a poison will affect consumer habits – at the margin, it lowers valuations for these companies and the growth of Coca-Cola over the next 20 years.
  • John Gordon at Pacific Mgmt Consulting said restaurant chains like Chipotle and Panera Bread have put pressure on fast-food providers.

Read the full article at http://www.bloomberg.com/news/2014-08-27/buffett-search-for-sure-thing-propels-76-year-junk-food-quest.html

Click here  to receive free and immediate email alerts of the latest forecasts.

U.S. Stocks Advance Amid Better-Than-Estimated Reports – Bloomberg 02-26-13

Salient to Investors:

Brad Sorensen at Charles Schwab said the economic numbers are holding up really well, and housing rebounding will continue, feeding into consumer confidence.

74 percent of S&P 500 companies so far reporting quarterly results have beat estimates. The index is at 14.8 times reported earnings versus the average since 1954 of 16.4.

Jonathan Golub at UBS said retail sales are rising fast enough to dismiss the effects of tax-law changes and gas price increases on consumer spending. Golub says the general trend is healthy despite the end of a payroll-tax break, a delay in income-tax refunds and higher gas prices, and recommends makers of food, beverages and other staples, and companies most dependent on consumers’ discretionary spending.

David Bianco at Deutsche Bank reaffirmed underweight ratings on staples companies and retailers due to the continuing struggle of low to middle-income households to make ends meet.

Read the full article at http://www.bloomberg.com/news/2013-02-26/u-s-stock-futures-advance-before-house-sales-report.html

Free email alerts of articles as soon as they are posted.