Dive Brief:
- At Berkshire Hathaway Inc.'s annual meeting, shareholders took time to direct questions covering many bases at CEO Warren Buffett and vice chairman Charlie Munger.
- Shareholders questioned the Berkshire duo about the company's investments in companies like Coca-Cola Co., one of Berkshire's largest stockholdings, particularly as Coca-Cola is struggling to cope with a changing soda landscape.
- In Buffett's 50th letter to shareholders, he announced that the company raised its stake in Coca-Cola by 0.1% to 9.2%
Dive Insight:
Another set of inquiries probed Berkshire's relationship with private equity firm 3G Capital, as shareholders questioned whether Berkshire's principles were compatible with 3G. Those principles include some well-known business moves touted by 3G, a company that has swooped in to acquire several companies and lay off thousands of workers as part of aggressive cost-cutting measures. One shareholder called these practices "brutal," though Buffett defended 3G's actions. He said that the companies 3G acquired had many more employees than necessary and that those companies fared "exceedingly well" after such moves were made, according to The Wall Street Journal.
3G has cut thousands of jobs from H.J. Heinz Co., more than 7,000, since acquiring the company in June 2013. Now with the Kraft Foods Group-Heinz merger underway, many are wondering if Kraft employees could be next on the chopping block.
And can we yet forget Buffett's serenading of shareholders with his ukulele video?