Money and Finance
- Warren Buffett, Charlie Munger, And Bill Gates On Cnbc
First, the videos from the final hour of the show when all 3 were together: No hurry for energy independence: Munger Hydrocarbons just as precious as Iowa top soil: Munger Buffett: Better option than increasing minimum wage Gates, Munger & Buffett:...
- Warren Buffett Interview With Fortune
Link to interview: Warren Buffett: We took a stand on Coke's pay packageFORTUNE -- Last week, Warren Buffett declined to vote against a controversial stock option plan for Coca-Cola's (KO) top executives that he thought was excessive. That has...
- Buffett: Shareholders Should Speak Out On Coca-cola
Mr. Buffett abstained from voting on the Coca-Cola compensation plan. He said it was excessive, but that he could never vote against Coca-Cola. But the plan, as expected, did pass the shareholder vote. Link to video: Buffett: Shareholders Should Speak...
- David Winters On His Vehement Opposition To Ko’s Comp Plan
It would be nice if both Warren and Howard Buffett would comment on this. The summary of Winters' case is that Coke's latest compensation plan is transferring 14.2% of the company, equivalent to about $24 billion (yes, billion, with a 'b')...
- The Long Case For The Coca-cola Company
The Coca-Cola Company (KO) will be announcing earnings on Tuesday, so what better time than the present to get an update on its current valuation. There's not much needed to be said about a company as great as Coca-Cola. It has the number...
Money and Finance
Coca-Cola responds to David Winters
"Of course, both option grants and repurchases may make sense — but if that’s the case, it’s not because the two activities are logically related. Rationally, a company’s decision to repurchase shares or to issue them should stand on its own feet. Just because stock has been issued to satisfy options — or for any other reason — does not mean that stock should be repurchased at a price above intrinsic value. Correspondingly, a stock that sells well below intrinsic value should be repurchased whether or not stock has previously been issued (or may be because of outstanding options)." -Warren Buffett (1999 Letter to Shareholders)
Coca-Cola’s response to David Winters, WHAT LEMONADE STANDS CAN TEACH US ABOUT OWNERSHIP, is fairly ridiculous on a couple of levels, and its contradiction with what Warren Buffett has taught the public over the years about share repurchases and when they add or subtract from value (see THIS) I think makes it more likely that Mr. Buffett will respond in more detail than he maybe previously would have. If you aren’t familiar with Winters’ issues with Coke’s compensation plans, see THISpost.
Coca-Cola’s response to David Winters, WHAT LEMONADE STANDS CAN TEACH US ABOUT OWNERSHIP, is fairly ridiculous on a couple of levels, and its contradiction with what Warren Buffett has taught the public over the years about share repurchases and when they add or subtract from value (see THIS) I think makes it more likely that Mr. Buffett will respond in more detail than he maybe previously would have. If you aren’t familiar with Winters’ issues with Coke’s compensation plans, see THISpost.
The Rational Walk blog has a great post on Coke’s response, and why the rationale behind it is off track:
Link to post: Coca Cola Misfires on Share Repurchase Rationale
- Warren Buffett, Charlie Munger, And Bill Gates On Cnbc
First, the videos from the final hour of the show when all 3 were together: No hurry for energy independence: Munger Hydrocarbons just as precious as Iowa top soil: Munger Buffett: Better option than increasing minimum wage Gates, Munger & Buffett:...
- Warren Buffett Interview With Fortune
Link to interview: Warren Buffett: We took a stand on Coke's pay packageFORTUNE -- Last week, Warren Buffett declined to vote against a controversial stock option plan for Coca-Cola's (KO) top executives that he thought was excessive. That has...
- Buffett: Shareholders Should Speak Out On Coca-cola
Mr. Buffett abstained from voting on the Coca-Cola compensation plan. He said it was excessive, but that he could never vote against Coca-Cola. But the plan, as expected, did pass the shareholder vote. Link to video: Buffett: Shareholders Should Speak...
- David Winters On His Vehement Opposition To Ko’s Comp Plan
It would be nice if both Warren and Howard Buffett would comment on this. The summary of Winters' case is that Coke's latest compensation plan is transferring 14.2% of the company, equivalent to about $24 billion (yes, billion, with a 'b')...
- The Long Case For The Coca-cola Company
The Coca-Cola Company (KO) will be announcing earnings on Tuesday, so what better time than the present to get an update on its current valuation. There's not much needed to be said about a company as great as Coca-Cola. It has the number...