Buffett, Mars & the 70-year Wrigley Taste Test

CNBC had a great interview this morning with Warren Buffett following the announcement that his firm, Birkshire Hathaway and Mars are teaming-up to buy Wrigley (yes, the chewing-gum company) for $$80 per share. It continues to amaze me how easy-spoken Mr. Buffett is given his success. No pretentiousness; no stuffiness; just a regular businessman doing  his thing.

They started the interview by asking Mr. Buffett why he wanted to buy $6 Billion (his firm's share) worth of Wrigley. His answer was fabulous: well, I've been doing a 70-year taste test of Wrigley's products and like their products. He goes on to make a very powerful statement: when you have the opportunity to buy a great company, take it. He couldn't help buy quoting Yogi Bear: "when you come to a fork in the road, take it!"

Mr. Buffett compared this deal with Lays' (the potato chip company) offer to sell to Coca Cola year ago. Coke passed on the deal and Lays ultimately sold to Pepsi Co., largely considered their best acquisition. Coke, Mr. Buffett says, made a big mistake. Wrigley is a geat company according to Mr. Buffett and the best time to buy it is when you can afford to do so. Period.

One more thing...

Mr. Buffett also made the following statement regarding the state of the economy: I think that we are in a recession and that it will be deeper and longer than people think. I don't think that he could have been more blunt, do you?