Chris R.

Is Warren Buffett Missing Something?

I respect your opinion. And yes, they are paying a hefty premium for Wrigley. But there is no doubt in my mind it is a brilliant deal. Wrigley's profit margins are better than most oil companies! Wrigley is in an industry, where they can easily pass along prices to consumers. People will continue to chew gum and mints. Gum, is also in basically a industry with no generic brands, and is virtually a duopoly. Wrigley, is by far the best brand in the world, in relation to where it is now, to where it will be 10 years from now, relative to its industry. It is a brilliant deal. I'm more excited that Berkshire will have a 10% stake in Wrigley than anything. There is so much room for growth for Wrigley. It can grow 10% annum for the next 20 years, if the trends hold true, and the East wants to continue being like the West.