QuestionerThe primary investment strategy of 3G capital is extreme cost-cutting after the purchase of a company. This typically includes the elimination of thousands of jobs. With the current U.S. President focusing on retention of U.S. jobs, will Berkshire Hathaway still consider future investments in 3G capital if those investments result in the purchase of U.S. companies and the elimination of more U.S. jobs?
WarrenThe essentially 3G management, and I've watched them, of their, close at Kraft Hines is basically they believe in having a company as productive as possible. The 3G people do it very fast and they're very good at making a business productive with fewer people than operated before. We prefer to buy companies that are already run efficiently because frankly, we We don't enjoy the process at all of getting more productive. I mean, it's not pleasant. But it is what is enabled the country to progress, and nobody has figured out a way to double people's consumption per capita without in some way improving productivity per capita. But I can tell you that they not only focus on productivity and do it in a very intelligent way, but they also focus, to a terrific degree, on product improvement. innovation and all of the other things that you want a management to focus on. And personally, we have been through the process of buying into a textile business that employed a couple thousand people and went out of business over a period of time or a department towards a business that was headed for oblivion. And it is just not as much fun to be in a business that cuts jobs rather than one that adds jobs. So Charlie and I would probably forego personally. having Berkshire directly by businesses where the main benefits would come from increasing productivity by actually having fewer workers. But I think it's pro-social to think in terms of improving productivity. And I think that people of 3G do a very good job at that. Charlie?
CharlieWell, I agree. I don't say anything wrong with increasing productivity. On the other hand, there's a lot of counterproductive publicity to doing it. Just because you're right doesn't mean you should always do it.
WarrenYeah, I'd agree with that.