Warren Buffett Has Wicked Smart New Partners. This Book Shares Their History

The book "Dream Big" lifts the veil on the history of Warren Buffett's new partners at 3G Capital.

May 28, 2014 at 12:44PM

In early 2013, Warren Buffett and Berkshire Hathaway (NYSE:BRK-A)(NYSE:BRK-B) shocked investors by announcing a $23 billion acquisition of H.J. Heinz.

But it wasn't the fact that Buffett would buy Heinz that surprised anyone. Heinz is just the kind of simple, branded powerhouse that Buffett has always been interested in.

What was surprising was the fact that Buffett teamed up with the Brazilian private equity group 3G Capital. This may have been the first time that many investors heard of 3G, but it's unlikely to be the last. During this year's Berkshire Hathaway annual meeting, Buffett was clear about his interest in doing more deals alongside 3G, saying at one point, "We see more opportunity to partner, and we will jump at it."

Thanks to the new book "Dream Big" by Cristiane Correa, investors interested in learning more about 3G can now dig into the successful P/E shop's impressive history. 

In the video clip below, Kase Capital managing partner Whitney Tilson shares some details on the book and the background of the 3G team. A transcript of the video follows.

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Tilson: It just came out, so I've only read the first chapter or so, but I've actually been following these guys. It's three Brazilian entrepreneurs -- I'll show you a copy of the book and you can see the picture of these guys. I just got a hard copy of it; it literally just came out this week.

It is one of the most extraordinary business stories of all time, rivaling the rise of Berkshire Hathaway, a Sam Walton kind of story, where these guys started in the banking business in Brazil, it must have been back in the late '60s, early '70s. Then they acquired a little brewer -- a beer company -- and started acquiring other companies, culminating with acquiring Anheuser Busch in the depths of the financial crisis in 2008.

They have, from literally a $50 million tiny little third-tier brewer in Brazil, in 20 years they built the world's largest brewer. Then they took over Burger King (NYSE:BKW), and then they've just partnered up with Buffett to buy Heinz in a $23 billion deal, last year.

Their track record is just extraordinary. Buffett thinks they are the best operating managers he has seen in his career, and that's saying something.

I think anyone interested in business and entrepreneurship and success in investing, should study these guys -- and also, if you're a Berkshire shareholder, I think the Heinz deal is the first ... I think Buffett and these three guys are hunting elephants.

It wouldn't surprise me to see them go after Campbell's Soup -- or any kind of consumer company now, I think, is fair game -- with Buffett's deep pockets and these guys' managerial ability. As a Berkshire shareholder, I'm thrilled by this.

Matt Koppenheffer owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway and Burger King Worldwide. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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