Yahoo Finance Warren Buffett Swears By His Junk Food Diet — 'If I'd Been Eating Broccoli And Brussels Sprouts All My Life, I Don't Think I'd Live As Long'
Warren Buffett, renowned for his investment acumen and unabashed love for junk food, once said, "I'm one quarter Coca-Cola." This whimsical declaration was more than just a humorous quip; it underscored his investment philosophy of putting money into what he loves.
During the 2015 Berkshire Hathaway annual shareholders meeting, Buffett elaborated on his long-term commitment to sugar-rich companies and addressed the evolving consumer behavior toward sugar consumption.
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Over the last 50 years, Berkshire Hathaway has effectively been long on sugar consumption through its investments in companies like See's Candies and Dairy Queen and publicly traded stocks such as Coca-Cola and Kraft Heinz. Buffett acknowledged the growing societal awareness of the health costs associated with high sugar intake, leading to declining carbonated soft drink volumes and challenges in organic growth for consumer packaged goods companies.
Addressing a shareholder's query about the potential narrowing moat of Coca-Cola and similar companies, Buffett confidently stated, "I think it's an enormously wide moat." He acknowledged the trends but emphasized the enduring popularity of Coca-Cola products, predicting, "20 years from now there will be more Coca-Cola cases consumed than there are now by some margin."
Reflecting on historical skepticism, Buffett recalled an article from the late 1930s that doubted Coca-Cola's growth potential and noted the lukewarm reception when Berkshire acquired Coca-Cola stock in 1988. Yet, Buffett's personal experience and preference for the brand have not wavered. "If I'd been eating broccoli and Brussels sprouts all my life, I don't think I'd live as long," he jested, highlighting his dietary choices and the joy he finds in his favorite foods.
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Buffett and his longtime business partner, the late Charlie Munger, who also shared a penchant for sugary foods, maintained a lighthearted perspective on their consumption habits. Buffett pointed out Munger, 91 at the time, followed similar dietary patterns, which Buffett humorously suggested help prevent "premature softening of the arteries." He downplayed the potential health risks, quipping, "If I die a little sooner, that'll just be avoiding a few months of drooling in a nursing home."
Despite shifts in consumer preferences, Buffett remains bullish on the durability of brands like Coca-Cola and Heinz. He recounted Berkshire's history as the largest shareholder of General Foods and the longevity of such brands through various corporate transformations.
"It's a pretty good bet that an awful lot of people are going to like the same thing," he concluded, contrasting the joy of drinking Coca-Cola with the more austere offerings at health-focused stores like Whole Foods. He stated, "I don’t see smiles on the faces of people at Whole Foods ... I like the brands we’re buying."
Buffett firmly believes in the lasting value of popular brands, even as consumer trends evolve. His investment strategy, focused on personal preferences and long-term value, continues to shape Berkshire Hathaway's portfolio.
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This article Warren Buffett Swears By His Junk Food Diet — 'If I'd Been Eating Broccoli And Brussels Sprouts All My Life, I Don't Think I'd Live As Long' originally appeared on Benzinga.com
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