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Motley Fool Hidden Gems Investing

Berkshire Hathaway Meeting Preview

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 3 May 2023

⏱️ 23 minutes

🧾️ Download transcript

Summary

Investing’s biggest weekend is almost here. (00:21) Ricky Mulvey and Asit Sharma discuss:  - Johnson & Johnson’s spin-off of its consumer health company, Kenvue.  - If Darden Restaurants is getting a good deal on its acquisition of Ruth’s Hospitality Group.  - Yum! Brands quarter, and what it says about the global economy. (12:42) Deidre Woollard and Matt Frankel look ahead to Berkshire Hathaway’s annual meeting, taking place this weekend.   Companies discussed: JNJ, KVUE, PG, RUTH, DRI, YUM, BRK.A, BRK.B, RDFN, OXY, CVX, AAPL  Host: Ricky Mulvey  Guests: Asit Sharma, Deidre Woollard, Matt Frankel  Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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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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