Warren Buffett on Assessing Product Utility in Acquisitions

An audience member asked Warren Buffett how he assesses the usefulness of a product during an acquisition. Buffett replied that they look at what the market says about the utility of the product, citing Dexter Shoe as an example where the market has "voted heavily" for its utility over years. He also mentioned the Coca-Cola Company, noting that despite personal preferences, the market's consumption of over 750 million 8-ounce servings daily indicates high utility. Buffett emphasized that it's hard to argue with the market on utility, comparing it to subjective experiences like enjoying a rock concert. He concluded that Berkshire Hathaway wouldn't independently decide on a product's utility if the public hadn't endorsed it.