Warren Buffett CNBC Interview All Videos

and is leveing heinz. does this indicate a change in your view on lbos and private equity? this is a partnership that’s buying a business to keep. and our partners like the idea of some leverage in it. we don’t like leverage as much, so in effect, our preferred stock is providing leverage to their common. so instead of having loads of debt providing the leverage, we have our preferred stock, which is equity and carries no threat to the cital structure. but there’s not a private equity deal. this is a business to own. berkshire will own heinz a hundred years from now and e’s no thought on berkshire’s part of selling a share. there may be a few peoplen the ggg group that decide that they want to sell at some point. and if they do, i hope we get a chance to buy more of it. but heinz is forever as far as we’re concerned. in your letter, you pointed out that the preferred shares have more than just the higher yield that they’re bringing in. this is also something that brings you warrant to buy more of the stock. yeah. we have a 9% preferred, an $8 billion issue. we have a call price on that