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Prediction: Greg Abel Will Buy a Stock That Warren Buffett Spent Decades Passing On for This Simple Reason
['Micah Zimmerman', 'The Motley Fool', 'July', 'Min Read']
Yahoo Finance
One of the most painful was McDonald's (NYSE: MCD), which Berkshire Hathaway (NYSE: BRKB) (NYSE: BRKA) sold in the late 1990s in a move Buffett flatly called "a very big mistake."
I think Greg Abel, Berkshire's new chief executive officer, will eventually buy it back, and the reason is simple: McDonald's is a textbook Berkshire business.
The result is capital-light, remarkably predictable cash flow, exactly the quality Buffett spent his career hunting for.
A wide moat, durable earnings, dependable and growing cash returns: This is the archetype of the kind of company Berkshire was built to own.
It is a company Berkshire knows well and already wishes it still owned.