Kraft

AUDIENCE MEMBER: Hello. My name is Harold Yulean (PH). I’m from Chicago, Illinois. I’d like you to describe the economic characteristics of the Kraft Corporation, why you feel this is a good business. WARREN BUFFETT: Well, I would say most of the big food companies are good businesses in that they earn good returns on tangible assets. And I don’t want to get into — particularly into specifics on Kraft — but if you own important, branded products in this country, whether it’s Wrigley’s or Mars or Coca-Cola, or a number of the Kraft brands, or See’s Candy, you have good assets. It’s not easy to take on those products. Just imagine, you know, taking on — Coca-Cola will sell a billion and a half eight-ounce servings of its product around the world today. There’s something in everybody person’s mind virtually in the globe about Coca-Cola. It’s a product of — since 1886 has been associated with happiness and good value in terms of refreshment and all that. It’s just about impossible, you know, to, in my mind, anyway, to take on a product like that. It’s clearly satisfies people in a huge way, you know, everywhere on the globe.