Career Testing
Career Testing
Career Testing
SUCCESS STORIES / AUG. 28, 2014
version 14, draft 14

Lessons of Warren Buffett's Role in Potential Burger King-Horton's Merger

 

The Man, the Merger, and the Economic Hustle

There is one man who is constantly in the news, and it isn’t for his love of fast-food and living simply, under the radar. It is with his providing funds to buy up the competition, where Warren Buffet is a giant, when it comes to financial investments, capitalistic stockholdings and piecemeal ownership in the United States, and abroad.

Recently in the news is Buffet’s participation in a deal that has yet to be solidified (as of this writing) through the Canadian government. The deal would merge Burger King, based out of Miami and owned by Brazilian 3G Capital Management, with Tim Horton’s, a Canadian coffee and breakfast-food chain with over 3,600 stores, not including the more than 800 across the border, in the United States.

While it is being reported that the potential deal has raised the arms and eyebrows from patrons of both established chains, give credit to this man whom the media deem as one of the most successful American investors of our time. Of course, any dunce who resents an American company seeking to move its headquarters out of the country -- for tax purposes -- usually undermines the economic affiliations which have been occurring internationally, for decades.

Warren Buffet is just one of the bigger players in the game. And it certainly says something about the nature of his interests and capabilities when he was able to make investments out of capitalizing on "sinking" US behemoths, such as $5 billion at stake in Goldman Sachs, $3 billion worth of bets on General Electric and another cool-handed $5 billion to Bank of America.

Mr. Buffett is the King.

The King’s Panache

Continuing his investor’s panache, as he is returning to one of the ships he let sail, just a few years prior. Upon 3G’s 2010 buyout of Burger King, the private firm had offered Buffet a chance to tickle his fancy with some of his growing pile of change. (That is, in billions.) The King and CEO of multinational conglomerate Berkshire Hathaway drew back the hands on the clock and dove right in to the warming market-trend of breakfast foods, where American burgers and Canadian coffee, etc., could potentially combine in the send-off, across the borders, of another American corporation. Fries with that? Or how ’bout a nice side-order of 9 percent annual interest?

The King is providing a reported $3 billion in financing for the deal, just continuing to move his pieces around, as he isn’t afraid to roll with his billions on the line. And why should he be? Even burgeoning investors and entrepreneurs are increasingly looking to the bets and decisions of Warren Buffett, in order that they might also become Kings and Queens of their own eagerly awaiting finances. The piles of money can’t just sit there accruing interest, especially not up against the taxman.

Ask George Harrison.

Adjusting to Taxes, Regulations and Trends

What is interesting to note is how the world is being shaped by all of this economic activity. Taxes and firm regulations are rapidly sending American companies to where they are much more able to find affordable havens. Putting aside the facts and figures of this long-lasting trend, Warren Buffet, through his most recent deal-making, teaches the American public how valuable his knowledge is, and how his money continues to make money.

And the average American worker who is only able to pay his or her bills each month, do they take from this what is possible with their own money?

Should they look to invest in the currents of their financial system being collectivized and undermining international borders?

Well, if they don’t -- Mr. Buffet certainly will. Along with a shitload of other people.

A New World Economy

Without turning to crass assumptions and patriotic inconsistencies, Warren Buffett is one piece of the financial puzzle, albeit a pretty damned large piece. Is it his slide towards the top, as we say, or is it the American worker’s slide to the bottom that is really transforming the United States into a place that some of us no longer recognize?

Hard to tell. But with this merger between Burger King and Canada’s "Timmie’s," the world is able to observe, via Warren Buffett, just how much operative control and power -- and wealth -- one person can accumulate. Instead of building ketchup bottle factories or producing candy shops, or working in them, Buffet brokers the deals between mergers, investing his own dough where he sees fit.

It goes to show just how powerful the dollar has become. Maybe not monetarily, but certainly symbolically and through the future trends of how our wealthiest "elites" on the planet are spending their fortunes. By investing in financial instruments for which much of the public is acutely unaware: stocks, bonds and their derivatives, what? And by participating in the internationally collectivized markets, which now, more than ever, transcend importance of the individual by profiting of off the most "intelligent" way to do business and make money:

Screw the worker, screw the country, screw the communities involved.

It’s about bucks, bubba. And we’re here to make em.

Of course, it can be considered inane to deem our businesses and money-makers as responsible for the ongoing actions of corporations and their investors and financial controllers. But what’s really questionable are the sociological effects at the behest of this new world which has been taking shape, for decades.

There is a lot of power in these deals and mergers. And it’s only a matter of time before that power, once again, is used as a means for highly dubious ends.

So while Warren Buffett is clearly a champion of American and international finance -- lurking in the shadows of power and control are the destructive forces that could potentially ruin, pollute and degrade communities and their populations for the benefit of a few to prosper.

On a grand scale, the merger of Burger King and Horton’s is meager, compared to the potential fusion of entire nations with one another. Think: the European Union. Where unelected officials decide national and international policy, legally unaccountable to their constituencies.

This is the shape of where we’re heading. And Warren Buffett is just one of the Kings of the castle, as it is being incorporated into an internationally governable body.

It’s one world, now. (We better get used to it.)

As there are plentiful Kings on the rise, Warren Buffett is playing a damn good hand.

And so can you.

 

Image Sourced: Warren Buffett

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