Berkshire Hathaway’s Warren Buffett Discusses Kraft Heinz, Anadarko, Apple And Much More

Berkshire Hathaway’s Warren Buffett sits down with CNBC’s Becky Quick to discuss the breaking news out of one of Berkshire‘s holdings Kraft Heinz.

Berkshire Hathaway's Warren Buffett

Image source: CNBC Video Screenshot

Buffett on Kraft Heinz restating earnings: The company has my confidence

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 hedge fund letters, conference, scoops etc

Warren Buffett on China trade talks: Sometimes negotiators need to 'act half crazy' to get results

Berkshire Hathaway's Warren Buffett sits down with CNBC's Becky Quick to discuss the futures dropping following the flair in China trade tensions and how he would handle a negotiation of this type.

Warren Buffett: The Occidental bid is a bet on oil in the long term

CNBC's Becky Quick sat down with Warren Buffett to discuss Berkshire Hathaway's move to step in the middle of a competitive takeover battle, helping Occidental finance its deal to buy Anadarko in competition with Chevron.

Buffett: I'm 'wildly' in favor of Apple repurchasing shares

Berkshire Hathaway's Warren Buffett sits down with CNBC's Becky Quick to discuss Apple, one of his biggest holdings.

Warren Buffett on how investors and business should react to China trade headlines

Berkshire Hathaway's Warren Buffett sits down with CNBC's Becky Quick to discuss the futures dropping following the flair in China trade tensions and how business should react to the news.

Warren Buffett and Charlie Munger on why they work so well as partners

Long time investment partners Warren Buffett and Charlie Munger sit down with CNBC's Becky Quick to discuss how they work together so well.

Buffett on the new NAFTA: We should treat Canada, Mexico as neighbors not adversaries

Berkshire Hathaway's Warren Buffett sits down with CNBC's Becky Quick to discuss his thoughts on the new NAFTA.

Buffett: We will always have some tensions with China

Berkshire Hathaway's Warren Buffett sits down with CNBC's Becky Quick to discuss the futures dropping following the flair in China trade tensions.

Charlie Munger: No one asked us to buy Anadarko

Warren Buffett and Charlie Munger sit down with CNBC's Becky Quick to discuss the Anadarko-Occidental deal and why they decided to help fund the bid.

Warren Buffett, Charlie Munger, Bill Gates on the state of the US-China trade talks

Warren Buffett, Charlie Munger and Bill Gates sit down with CNBC's Becky Quick to discuss the latest developments in the U.S.-China trade talks and what they think should happen next to benefit all parties.

Warren Buffett on Berkshire share buybacks and what it takes to run a public company

Warren Buffett sits down with CNBC's Becky Quick to share his perspective on share buybacks through the example of Berkshire and Apple.

Bill Gates, Charlie Munger, Warren Buffett on the socialism versus capitalism debate

Bill Gates, Charlie Munger and Warren Buffett sit down with CNBC's Becky Quick to give their opinion on the debate between capitalism and socialism.

Warren Buffett: Stocks are 'ridiculously cheap' if interest rates stay at current levels

Warren Buffett, Charlie Munger and Bill Gates sit down with CNBC's Becky Quick to discuss the state of the markets as well as the overall economy and the Fed.

Bill Gates on helping increase worldwide health care access

Warren Buffett, Bill Gates and Charlie Munger joins CNBC's Becky Quick to discuss the state of health care access around the world.

Warren Buffett discusses the Berkshire, Amazon, JP Morgan health care venture

Warren Buffett, Bill Gates and Charlie Munger join CNBC's Becky Quick to discuss the state of health care access around the world.

Anadarko likely to deem Occidental’s buyout offer superior to Chevron’s, sources tell CNBC

Anadarko Petroleum's board of directors is likely to determine on Monday that Occidental Petroleum's buyout offer is superior to the agreement the board reached to sell Anadarko to Chevron last month, sources tell CNBC's David Faber.

Charlie Munger: If the government prints too much money, it ends up like Venezuela

Legendary investors Warren Buffett and Charlie Munger sit down with CNBC's Becky Quick to give their thoughts on modern monetary theory, which states a government can print money when it is in need of more of it.

Warren Buffett and Charlie Munger weigh in on Wells Fargo management

Legendary investors Warren Buffett and Charlie Munger sit down with CNBC's Becky Quick to give their thoughts on Wells Fargo and how its management changed.

Transcript

Welcome back everybody. We are here and news is breaking there's just an FCC filing that came out from Kraft Heinz. That's obviously a big Berkshire Hathaway holding Kraft high and says that it will restate earnings for 2016 and 2017 due to misstatements in the original filings. It does not however believe that the misstatements are what they call quantitatively material to any individual reporting period. It says that the impact on adjusted earnings is expected to be less than 2 percent for each year. Kraft Hines says that it has now completed an investigation that shows several employees and its procurement operation engaged in misconduct. But none of those were members of senior management. Our guest today again is Warren Buffett. He's the chairman of Berkshire Hathaway which owns a major portion of Kraft Hines and Warren what do you think of this. This news just hitting while we're sitting here.

Well more or less what I've heard. I'm not on the board anymore but. But Greg Bolan for a bit cooler on. So I've heard from them. And this is an update that I heard last night. And they can't they can't issue the first quarter reports until the 10k is filed and they can't file the 10k till Pricewaterhouse signs off on it and. And that apparently is going to require a restatement of a few years. And we could not report any earnings from Kraft Heinz in the first quarter because. If we get a dividend from Bank of America that dividend goes into earnings but because we have. Over 20 percent of Kraft times we don't report report the dividends we report the earnings. So we received a dividend of about one hundred and thirty million in the first quarter but that we don't report that at the. End we expected to get the earnings before we issued our own report. But when the time came to issue our report and we didn't have anything we just we put a zero in there and explained it in our release Saturday. And this is a further. Indication of the facts as they stand now. At some point the price Waterhouse will need to be happy with the figures they're reporting and that evidently involves a restatement. And at that time my guess is the quarterly figures become quite current and that we keep picking up our share of the earnings.

I mean this has been a long standoff period between TWC and the company if they've missed the deadline to get the numbers to you at that point.

What we did we didn't expect it. I thought that we would have the earnings on a dime. And Kraft announced earnings for last year. But they had not been signed off on by their auditors. So what they released them publicly they couldn't file the 10k with the S.E.C. subsequently. That's not unusual for companies to announce the earnings before they've actually got the sign off.

But in any event it's just you know with all we're going to get them this week or next week whatever it might be.

And and then last Saturday came and that's our time. But we've seen quarterly earnings we did not have and so we stuck nothing in there and then a footnote and we put in our press release as well that we just didn't have the figures.

If they're restating their earnings does that mean Berkshire Hathaway will also have to restate its earnings.

No but it would. It would be so immaterial by the time you take just our share or a much larger company so. That. I don't know exactly what we do when we get if it gets into the second quarter. I don't want to pick up two quarters and one quarter exactly how that works.

They said that this is the they've wrapped up this investigation. Are you satisfied with what you've heard from that part of the investigation or do you know that. I don't know about that.

I do know that because I've been I've been kept abreast of some of the things. I don't listen in on directors calls or anything like that but. But Greg tells me it was the high points of what were the low points of what's happened and that we have a terrific head of the auto company Jack Pope who's an independent director. He knows that sort of thing at the end he's put in the hours on it. So I feel very good about about the fact that Jack is is it he's really in charge of things from the standpoint of the directors as the company have your confidence.

The company has been competence. You had talked about it over the weekend where you said that.




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver