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Did Warren Buffett Just Pick Ajit?

Summary

Buffett getting ready for retirement.

Sanofi bid on Medivation.

No one bid on Integrated Device.

M&A Daily

Welcome to the Retirement Planning at 85 issue

Berkshire Hathaway

Fellow fans of Berkshire Hathaway's (BRK.A/BRK.B) Warren Buffett can rest assured that he has adequately saved up for any conceivable retirement plans. In terms of his plans for Berkshire, they may be coming into focus. The key players may include Jorge Paulo Lemann and his partners at 3G Capital on the M&A side as well as Ajit Jain in the CEO office. Last year, I mentioned Lemann's name for future deals and Jain's name for Buffett's successor:

Andrew Carnegie was folksy and beloved, characteristics that he was able to maintain for years… because he had Henry Clay Frick. Carnegie did not break strikes; Frick broke Carnegie's strikes for him. Buffett is as folksy and beloved as Carnegie; Buffett's Frick is a Brazilian named Jorge Paulo Lemann of 3G Capital. While Buffett does not endorse hostile deals, Lemann does. While Buffett bangs on and on about his preference for high taxes, Lemann moves his businesses to the optimal tax locales.

In this year's letter, Buffett indicates that he would like to invest alongside Lemann again after their experience with Tim Hortons, which is now part of Restaurant Brands International (NYSE: QSR). Having invested in both AB (NYSE: BUD) and QSR, I feel the same way. Is the Brazilian team behind 3G the greatest group of business operators on the planet? No one better springs to mind. Buffett knows when he sees a good thing. Paulo and Buffett can each operate at a scale that serves each other's interests well. This is a great fit and one of the best finds in Buffett's effort in recent years to expand his horizons beyond the U.S. borders.

Jorge Paulo Lemann, Buffett's Henry Clay...


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