Warren Buffet is biting off a stake in Wrigley’s gum. At a time when the US economy is softening, the Oracle of Omaha is buying. What lessons can we learn?
In an interview, Buffet was asked straight out: why now? He answered quite clearly: the best time to buy a really great business is when you can. The folks at Wrigley want to sell. And so since Warren Buffet likes to invest in well-established brands—think Coke, Gillette, and See’s candy—and Wrigley’s has been around for about 70 years, this was the time to do the deal, no matter how the economy looks right now.
Great investors often have no clue what things will be like next quarter. Often they don’t care very much, either. But they know that great companies will continue to be great, year in and year out. That’s investment advice that we can take to the bank.
Douglas R. Tengdin, CFA
Chief Investment Officer
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