Buffett’s Tackle Paramount World: "It is an effective way to satisfy women … but it surely’s not essentially a superb enterprise."

Right here's Buffett's tackle Paramount World, a streaming firm that BH invested in Q1 2022.

FULL TRANSCRIPT: BERKSHIRE HATHAWAY CHAIRMAN & CEO WARREN BUFFETT SPEAKS WITH CNBC’S BECKY QUICK ON “SQUAWK BOX” TODAY

BECKY QUICK: In a short time, can I simply ask you about Paramount? That’s one other Berkshire funding that’s been a comparatively new one. Is it due to streaming? What occurred? WARREN BUFFETT: Streaming that, you already know, it’s not likely an excellent enterprise. And, you already know, it the folks in leisure that make a lot of cash, the shareholders actually haven’t finished that nice over time. And equipped the cash, it’s a glamorous enterprise. And I had some buddies in Hollywood, you already know? And so they search for — and so they discover ’em. I imply, it’s prefer it attracts folks. And— BECKY QUICK: You imply suckers? WARREN BUFFETT: It’s an effective way to satisfy women for all I do know. Properly no, I imply, however the is it essentially that good a enterprise, when it was distributing or producing films or and also you’ve obtained some those that have gotten deep pockets that aren’t gonna give up. And the product they’re providing folks, the prospect to look at all these films, you already know, for peanuts and all that. However can they — we’ll discover out. However to date, they haven’t been in a position to. They’ve been in a position to appeal to subscribers, however they appeal to ’em at a horrible value. BECKY QUICK: Alright. You gave a complete lotta the reason why to not purchase Paramount. Why did you purchase it? WARREN BUFFETT: Properly, we’ll see what occurs.

Right here is Buffett's pondering in a nutshell: "It's a glamorous enterprise … you’ve obtained folks with deep pockets. And the product they’re providing … the prospect to look at all these films … for peanuts … They’ve been in a position to appeal to subscribers however … at a horrible value." What he means is the client acquisition price is simply too excessive for the streaming enterprise as PARA has to compete with higher capitalized rivals like Netflix and Disney. However the streaming trade is stuffed with deep-pocket gamers who may be eyeing PARA's IP property. In different phrases, PARA is an acquisition play — identical to BH's bigger funding, Occidental Petroleum, may be.