No. of Recommendations: 3
Buffett had mentioned at the AGM that they had been looking to acquire a Canadian company. Also they would “ not be uncomfortable “ investing in Canada.
There might be good opportunities this year especially if tariff wars go badly.
It also helps that Abel is a Canadian with expertise in energy.
Some of the companies suggested around the internet are:
Trans Mountain pipeline.
Suncor Energy, which they used to own.
CNI or CP railroads, regulators permitting.
Utilities.
Alimentation Couch Tard, fuel and convenience stores like Pilot.
Constellation software.
Intact Financial, P&C insurance.
Fairfax Financial, mini BRK.
Restaurant Brands International, owns Tim Hortons, Popeyes, Burger King
Some like Constellation and ACT are probably too expensive and regulators would be unlikely to approve a big railroad merger. And Buffett will not be making a hostile bid not supported by management.
I think TransMountain pipeline or RBI seem feasible, as the kinds of businesses Buffett understands well and which BRK already own.
Infact Financial has a strong operating record with combined ratio between 86 and 91% and ROE over 16%. Charles Brindamour, CEO since 2009, with a strong record of acquisitions and operations since spinoff from Dutch company AXA, is very highly regarded. This would be my pick of the above companies if it was available for sale.
What do you think of the above companies and what are other acquisition candidates for BRK?
