Buffett praises 3G Capital’s cost-cutting style of business
OMAHA, Neb. (AP) — Investor Warren Buffett is defending the aggressive cost cutting that 3G Capital is using at companies the firm has worked with Buffet’s Berkshire Hathaway to buy.
Buffett told an arena full of Berkshire shareholders Saturday that he’s never advocated for companies to employ more people than they need, so he supports 3G’s approach.
Berkshire and 3G teamed up to buy H.J. Heinz, and now the two are working on buying Kraft Foods. Berkshire also helped finance 3G’s acquisition of Canadian restaurant chain Tim Hortons.
A shareholder questioned 3G’s ethics Saturday because Berkshire is known for mostly leaving businesses unchanged after acquiring them.
Buffett says that 3G is better than Berkshire at some things, and he predicted more deals in the future.