Warren Buffett MBA Talk - Part 5

[aquatikoon]

He's going on about the dissemination of coke at home and abroad amongst the backdrop of upswings in diabetes diagnosis. Wherever money is being made in prodigious amounts it usually seems that some little known adverse effect is happening elsewhere or lurking in the shadows of the future.

[aquatikoon]

Nice contrast between positive and normative economics in his bit on taste-memory, when you consider the current type 2 diabetes epidemic. Also, investing in Coca Cola was probably the most conspicuous no-brainer ever.

[wetyewruyrtsutrdhjfg]

I think the scuttlebuttle method was covered in "Common Stocks and Uncommon Profits".

Someone correct me and call me an idiot if I'm wrong.

[chris14091975]

Great discussion about taste memory

[buzzclick500]

In the late '90s, I worked in a nice hotel: the outside ashtrays were full of half-smoked cigar butts. In the early 2000s, they were full of half-smoked cigarette butts. In the late 2000s, there were a few completely-smoked cigarette butts.

[rebeccatolstoy]

What a legond!! the inormation he passes on will be useful 100 years from now as well as today. he is so timeless.

fabulous!!!! made my day!!!

[DackIsBack]

I bet he invested in coke before doing this talk...

[mychkova]

@DackIsBack Warren Buffett owns 200 million shares of Coca-Cola Company. He definitely has an significant vested interested in it. :)

[mychkova]

@DackIsBack Warren Buffet owns 200 million shares of Coca-Cola Company. :)

[quarkmuffin37]

Hmmmm... what are the health impacts of drinking 5 cans of coke a day? Esp diest coke with aspartame, exitotoxins etc? How does that make one happy?

[DackIsBack]

@quarkmuffin37 It's not good for you... I'd be most concerned about type II diabetes.

But, It's an addiction! People don't eat 5 apples or oranges every day...

But they don't have so much sugar, No natural foods contain 10% refined sugar...

Our brains are wired to crave sugary foods, So coke come in and ADVERTISE...

It's sort of like putting a needle full of heroin in front of a recovering drug addict.

[DackIsBack]

@quarkmuffin37 I also have a theory that aspartame is an addictive drug...

So is MSG...

Our food is loaded with shit that makes us want to eat more, Why do you think Americans are so fat and Heart Disease and Diabetes are at such epidemic proportions these days.

If you want to sell more soft drinks than coke... Add More Sugar. ;p

[DackIsBack]

@quarkmuffin37 There's also the energy drink market...

They're doing pretty well...

Caffeine is ADDICTIVE!!

[buzzclick500]

@DackIsBack : So is highly-refined bull urine(taurine), apparently. ;])

[BiggerThinking1]

I have no taste memory for alcohol!

[pfeiffer101]

Great insight with his, "If you had one silver bullet..." Talk about getting data directly from the source rather than through reports which get twisted by analysts' own beliefs and biases.

Didn't know about coke's no taste memory. Only problem is how bad the product actually is for you with all the glucose. That's probably why Coca Cola doesn't just sell soda they also own companies like odwalla...

[XAeolusX]

Something tells me he likes coca cola a lot.

[nikonutube]

I like Buffett, but it seems to me the reason his company has made so many billions over the year is because the employees who work at the companies he owns are getting paid less than what they're worth. All wealth comes from labor, so why are those billions going to Buffett and not to the people actually doing the work?

[theguvnorjimmy]

@nikonutube The wealth comes from the entrepreneur who puts up the capital, provides the jobs, and takes the risks. In a free market people get paid what they are worth. If a company is underpaying workers I could open up the same company, pay the workers more and put the other guy out of business. In a corrupt society run by government, the workers do not have much and the governments usually live like kings. Look at any communist country.

[Maarttttt]

I get sick of coca cola fairly quickly. Is something wrong with me?

[mattan147]

Great guy, addicted to coke :-)

[Klarkedude]

I want some Cola now...

[omarlives]

coca cola n most soft drinks have high fructose corn syrup which has been directly linked to causing cancer. i can't believe buffett drinks 5 a day. i thought he was smart.

[Pareidolic]

@omarlives

HFS is no more harmful that table sugar. You've been listening to too much alex jones

[omarlives]

@Pareidolic where have u been getting ur information from? Increase risk for Type-2 diabetes, coronary heart disease, stroke and cancer seems pretty harmful to me. Haven't u seen the commericals of food products that specifically state that they exclude HFCS from their products. Why would they specifically exclude a non-harmful ingredient? Just look up "9 Ingredients to avoid in processed foods" on yahoo search engine. Maybe you'll learn something.

[camilocuesta]

@omarlives He is 80 years old, drinking coke 5 times a day hasn't killed him. At that age, the risk of cancer really doesn't matter.

[omarlives]

@camilocuesta yea it hasnt had enough time to decay his body. fortunately, we'll still have time to develop the big C

[perlaand]

its seems he suffer of anxiety.

[2beeeornot2beee]

if i had a good family with alot money n into business and stocks doing ever since 11 years old i am sure i be a billionare too

[autobotsNdecepticons]

I for one can't drink five cokes in a day. The sugar makes me feel sick after a while.

[qtronman]

Where was this and what year/date?

[amh1230]

haha warren is great. loved when he took a sip during the coke question, haha!

[mjwardcouk]

An amazing man! Very coool videos!

[RussianWithAttitude]

i'm sure it is. how about think money and make a world a better place? cheers

[RussianWithAttitude]

coke is unhealthy, so is fast food. no happiness in the long run here.

[DannyBoy443]

It is for your wallet if you invest in it. Think money man.

[rainzoro]

coke isnt the only beverage product they sell. Coca-Cola Company will, by all god means, produce healthier products if the market demand is high enough.

however i agree on your point that theres potential on organic food business, which is also why Coca-Cola is selling Dasani.

[JWTaphouse]

Thank you for sharing this. It is a really great follow up to his book.

[sysopkc]

Oh its a bunch of bullshit, impressioning of such disposables is as fly by night as can be. If Coke fell of the face of the earth tommorrow by the end of the month no one would remember and an equally "impressive" company with the same "jive" would replace them. The consumer imprinting would resume under a differing brand. This is nonsense, its entertainment. NO SERIOUS INVESTOR including him does there investing in such a haphazardly manner. These companies by the way manage 100's of products.

[Zlane]

@sysopkc you dumb

[asstezz]

it's an entertainment

[cooolway]

In this video, he seems risky to me; accepting to buy companies within 5-6 minutes worth of analysis. But then again, he is the billionaire, I am not.

[tannerutah]

just listening to Warren makes me want to go out and buy some see's candy and coke he is a f*** genius pure and simple what a nice guy also

[youcantakeapunch]

I feel the same way because soda and fast-food are empty calories.  American is the only country that has fat people who are malnourished.

[jhalas20]

You might have read the same nutrition book I did -- Eat to Live by Dr. Joel Furhman. A friend of mine followed it for 4 months and went from 5'10" 245 to 175. I'm on it now, and have lost 12 lbs in 2 weeks.

[youcantakeapunch]

I never read that book but thanks for the heads up. I'm going on Amazon to purchase it tonight.

[panara10]

it's taken a long to for America to finally hit the stage of obesity it is at. The Chinese and Japanese love fast food, but it hasnt been here for 30 years

[HCalzadaM]

That coke consumtion will grow overseas, that is just if health organizations fail to stop it as they struggle now to do it. Is a world concern because we don't have to fase the obesit problems that America is facing. It sould be forbiden until 18 years like tobaco! Other than that. Great WB!

[HCalzadaM]

The coke has the same pattern of consumtion of tobaco. You don't get tierd of it if you are an adict and you started consumtion on an early age. Is unheathy like tobaco, is disgustingly sweet, doesn't stop the thirst, doesn't have bring value to your body and as with tobaco if you lived without it until your adulthood your body refuse it even if is asociated with "happy people" on TV.

[neelonghunglow]

use personal descretion, one coke okay, two cokes ok if you drink to many its bad abuse with any thing is bad, if you drink to much water in a day you can get cramps and die. if you arent responsible in your car when you are driving you can die, try jumping down the stairs on one foot you could fall and die, that doesnt mean you should have water ,cars, or stairs, be responsible, moderate, and enjoy

[davidinfo13]

i disagree with his opinon on coke.......I can taste the corn syrup within coke no problem and it disgusts me if I drink it often

[nez2008]

Coke is horrible. Drink and stock.

[trinisexgod]

I admire Buffett, but take it from me that Coke is poison to the humam brain.

If U know anyone drinkng 5 or 6 cokes a day, ask them if they are also taking antidepressants!!

[thaisred]

Buffet drinks 8 cokes a day.

[crichagland]

lol

[s3063215]

did he drink now??

[kentharlarrisis]

Gotta love this guy. A billionaire genius that is so humble and down to earth. Has that nice "grandfatherly" feel with his light sense of humor and simple discussion of what truly makes a great business. My number one idol.

[damthatriver09]

@kentharlarrisis You've just kissed his ass

[ostentatious123]

i have a queation!what if there is a young guy just as genius as warren,and it happened that guy is one of your company staff,would you play dirty with him or back stbbing him even more than other plain staff?

[fatso2992]

I have an answer! A young guy just as genius as Warren probably would start his own company and would not be working for berkshire. and secondly Warren buys other businesses and mostly stays out of them. @2:15 he talks about circles of competence. If he bought a shoe company he wouldnt step in and try and control it he would have a manager making the decisions. So he only deals with the managers not the employees and none of the managers he has hired have ever left to work for a competitor.

[WorkingTheTop]

Actualy, the owner of nebraska furniture mart, left and started a furniture store across from him. He eventualy purchased it and she worked for him again. Interesting story. :P

[wwwMBAThesisNet]

I prefer the sports drinks, but actually Coke owns PowerAid so they have that sector covered.

[edmondublianda]

Leizhg, thanks for sharing..his talk is full of nuggets of wisdom to learn from...Warren is really a genius...

[123ziran]

I have a lot of respect for Warren Buffett but I have dout about the longterm future of Coca Cola. I always avoid coke whenever alternative is possible.

[Reyazj]

Coke or Pepsi, makes no difference. The wonder is both these companies have been around for such a long time, like WB says, the name is written up there. Yes, if they stopped advertising, it would get eaten up eventually, but will still hold out for a considerable time as the SHARE OF MIND is vast.WB 's success is in his basics, we are sometimes too complicated.

[Write14u]

I think Coca Cola has a bigger luiqidity of consumers. Hence, if it ever stopped advertising it would be fairly easy to hurt. Advertised products as a rule of thumb don't sell themselves hence the advertising.

[Write14u]

If you could advertise better then Coca-Cola you could hurt them for sure

[tcampbellla]

Yes, but you would have to have an awful lot of money to do that!

[IdPissOnYourGrave]

Warren Buffett doesn't need any advice from you goofs,believe me!

[haldenver]

buy shares in his company and he works for you!! But an employee with a coke habit....???

Can this guy be trusted ?

[hkr007]

Well lets see, he is the most successful investor of all times. No one has ever come close to his returns over time. Can he be trusted? I have never heard of a human being questioning this man's integrity. By the way, he donated close to 40 billion to charity recently if that means anything.

[richgayguy]

Being a raw vegan I would never put money into coke, for myself, or for the society via investing in it, however Buffett is wise in terms of money (maybe not nutrition), and this wisdom can be applicable within their own personal frame of ethics, I think I might invest in shavers which have no chemicals or anything, just the blade, I think that is a good righteous, and financially effective investment.

[lti12]

coke is bad for you

[iain9876]

drink 5 cokes in a row...then your not gonna want cokes anymore!"

[hellopie3]

it depends, dude

[Write14u]

My lips dry out in 3 although it could be DNA...

[Marzzhill]

Well, Warren, you forgot about WATER - it has no taste memory and the water industry has grown just as fast as Coke.

[rickrocker]

people will catch on that bottled water is a joke... eventually. BTW, Coke and Pepsi both bottle water as well.

[ybreuben]

But how easy is it for competitors to undermine a water bottling business?? Coke has virtually no competitors (and i hate pepsi).

[saltyseaweed]

Coca-Cola Company owns Desani Water and Vitamin Water . . .

[nosfelicita]

with developing countries pop. growing (BRICS and others) definetely coke is gonna make good profit.

[zzaido1]

Dont agree that Coke is te only product with no taste memory.....Guinness is similar as I can drink 5 pints a night. Granted I get fairly pissed but I like it too

[nammoo89]

drinking five cokes a day, is that a good thing? are cokes addictive?

[Thorml]

I think they used to when they had a small amount of cocaine (or something), but that was long ago. I don't think they have anything like the fat craving that burgers have.

[padrinoce]

Buffet, great guy and this video is giving a subliminal edge to his business.. I'm already feeling like I wanna go out and buy myself a coke..

[daniel987878]

Same here I might go rack up a line of coke.

[knots1975]

lol true

[nkliao]

good point of view

[dollardollarbill1]

hahaha, hes marketing coke the entire talk

[tdotc]

and i might just stick with a billionarie's advice :p if you can't beat him, join him

[TheSophist2007]

@dollardollarbill1 gotta love it

[RsTeamK0]

@dollardollarbill1

Nectar of the gods bro.

[jackdentreprenuer]

@dollardollarbill1 when i get investment money i'm gonna invest in cocaine, i mean coke-cola! seriously... i'm going to!

[Bennyclay661]

@dollardollarbill1 love that smooth taste,

[jimbo59153]

he loves that crap he always talks about it. @dollardollarbill1

[pacific168]

Thanks a lot for these videos

[L146705]

great video

[usgcorp]

thank you very much for making this set of videos available

[masterxyzxyz]

I agree

[vambati007]

hey leizhg,thanx a lot for these videos..they are virtual case studies. it's awesome.one don't need an education in business..all you need is lessons from great leaders.