Berkshire Hathaway Meeting Preview
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 3 May 2023
⏱️ 23 minutes
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| 0:00.0 | It's shiny, it's new, it's a band-aid. |
| 0:08.8 | You're listening to Motley Fool Money. |
| 0:11.6 | I'm Ricky Mulvey, sitting in for Chris Hill, Austin Charmer joins us now, Austin Good |
| 0:25.0 | to See You. |
| 0:26.0 | Good to see you, Ricky. |
| 0:27.6 | Just a quick note, we will cover the Fed announcement on tomorrow's show. |
| 0:30.8 | It is a little past 2pm Eastern time right now, so we're not going to get to that or the |
| 0:35.1 | regional banks nonsense. |
| 0:37.0 | But there's a lot of earnings and even an IPO to talk about, Oset tomorrow, a very rare |
| 0:42.4 | thing is happening, which is that a company is going public. |
| 0:45.8 | Johnson and Johnson is spinning off Kenview, the consumer health stable, which includes |
| 0:50.5 | brands like Band-Aid, Tylenol, and Nutra Gina. |
| 0:54.6 | Is there a business reason to do this or is this just because analysts don't like mixing |
| 0:59.3 | multiples and mixed fractions are hard? |
| 1:02.3 | Company like Johnson, Johnson, very diversified, conglomerate business tends to mask some of |
| 1:07.7 | its strength by having this consumer health business nestled up beside a pharmaceutical |
| 1:14.6 | business. |
| 1:15.6 | The pharmaceutical revenue streams have a higher margin. |
| 1:19.5 | So management feels that if we spin off the consumer facing stuff, then maybe shareholders |
| 1:25.5 | will value us more for what we can produce the profits we're capable of at the same time. |
| 1:31.3 | A good consumer facing company, when it's managed by a set of dedicated capital allocators, |
| 1:38.0 | veterans, sometimes you can improve the speed at which that business accelerates and the |
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