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Berkshire Hathaway Inc. Message Board

  • neutzling neutzling Nov 21, 2012 1:47 PM Flag

    Hostess

    Why is Berkshire not buying Hostess? Seems like a perfect fit, and demand for Twinkies is there - just take a look at their prices on eBay.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • BRK likes to buy well run companies. Obviously a company that's broke and shutting down because of a labor dispute isn't a well run company. It would be a much better project for company that likes "fixer uppers."

      • 3 Replies to water_skipper
      • GEICO was in a world of hurt when Warren began buying it...:)

        Hostess was ran into the ground by incompetent management, and that would likely preclude Berkshire from buying it... however, when it was announced that Hostess was heading back into bankruptcy, the thought crossed my mind to that it would be a great thing to have join Berkshire... but only because it would be protected.... not that it would fit Berkshire as well as some other acquisitions might.

        I think Nestle (which I don't even know if they are in the running) should consider it... or Mars. It looks, however, like it might be split into the bread division going to one buyer, and the snack cakes going to another (probably the maker of #$%$).

        ~William

      • Labor dispute? We're not talking skilled work here. Hostess is highly mechanized anyway. How hard is it to find new people who can dump flour, oil, and egg beaters into a machine?

      • Agreed! Boo-Fay has always said that he likes to buy good companies in bad industries. "Good" defined as "well-managed." Since when did anyone ever accuse Hostess of being well-managed?

 
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