Warren Buffett on Berkshire B Share Split and Burlington Northern Acquisition

Discussion of the 2010 Massachusetts special election and what it reveals about public sentiment. Buffett explains people are unhappy with unemployment, mortgages, Congress, and Washington generally due to economic conditions. He notes that while this may be misguided, leaders must respond to get things done.

Buffett discusses the Berkshire B share 50-for-1 split and his concern about increased trading volatility. He emphasizes wanting shareholders who think like owners, viewing Berkshire stock like buying a farm or apartment building to hold forever, not day traders.

Buffett contrasts Berkshire's Burlington Northern acquisition with Kraft's Cadbury deal. He criticizes Kraft for selling a pizza business at 9x earnings (tax-inefficiently) to buy Cadbury at 16-17x earnings. Buffett explains he hates issuing shares but it was necessary for Burlington Northern, combined with $22B cash, without selling any Berkshire businesses.

Buffett commits to continuing acquisitions as long as he's alive, preferring to use cash but willing to use minimal stock if necessary. Brief mention of past M&A opinions including Coca-Cola's decision not to buy Quaker Oats (which PepsiCo acquired for Gatorade).