Insight
Farming profitability requires competitors to suffer crop failures
“But what you need as a farmer is somebody else to be in trouble with their crop, and your crop work out well.”
Disclosure
Bragg: Eastlink won cable acquisitions by paying top price without overnegotiating
“There's six buyers, but you always get them, and it was basically, we became easy to deal with, and we always lived by our word, and we always paid top price, and so we just kept picking them off one at a time, And made it easy and didn't over, over negotiate.”
Opinion
Bragg: Eastlink and Oxford Frozen Foods have no obvious next big step
“We just gradually bought them, but there's nothing to buy anymore. I think about this. We have both our cable and food business that were both quite rapid growth businesses from really small cottage industries to professional companies. We've played that game,…”
Insight
Bragg: Private firms can absorb premium acquisition prices via longer payback horizons
“If you paid a little too much and you're a private company, You just have to live a little longer to make it work. My brother used to say about buying a woodlot, well, maybe we're paying too much, but if we live long enough, it'll be a good deal. So this is th…”
Insight
Bragg: Being Public Slows Companies Down and Attracts Government Scrutiny
“It's costly to be public. And it slows you down, and you're, ah, and you're a target for everybody. Public companies attract government.”
Disclosure
Bragg: Eastlink is doing business with Starlink for fiber backhaul
“In fact, we're doing business with Starlink because when they get down, they want to have fiber that they can feed to people.”
Insight
John Bragg: Using your own name is among the best marketing tools
“One of the best marketing tools you can have is use your own name. People catch on. McCain's would be a great example. Everybody knows McCain french fries.”
Disclosure
Bragg: Family investment portfolio exceeds three billion dollars
“I read where so-and-so's running two billion dollars and three billion, and we're doing more than that, and so we've got a big portfolio that's done very well for us, so we try to streamline it and keep it simple and let the operators run the business, and the…”
Disclosure
Bragg: Borrowed heavily at 1-2% interest rates to buy stocks
“We've always had a modest portfolio, but when interest rates were down to where we could borrow money for one or two percent, We said, look, this is an opportunity. We should get at this, and so we did. Borrowed lots of money to buy good stocks, and it's been …”
Insight
Bragg: Operating a business and investing in stocks reinforce each other
“Buffett would say that, that if you're a businessman and investing in your business, you're probably a better stock picker, because you use the same principles. But if you're an investor, it will help you in your business, because you're using the same princip…”
Insight
Bragg: Food business success depends entirely on cost control over revenue
“So I would say, for instance, in the food business, all about cost, because you don't know what the revenue is going to be, because we don't know whether we're going to have a frost or whether the currency is going to change or whether somebody else got a big …”
Insight
Bragg: Capital allocation is the single biggest factor in cable telecommunications
“And I would say in cable, you know, you always have to look at costs, but capital is probably the biggest thing in the cable business, because you can make big mistakes, and, you know, spending, let's say a billion dollars to get into programming, and that jus…”
Assertion Not checkable as stated
John Bragg: Environmental rules forced $75k bridge for dry stream
“When you, this particular case, it was a thousand acre woodlot, and we were building roads through it to do silviculture work, great for the future, and I went to see where they put a bridge in, and it wasn't a bridge, but it was half bridge and half rock. It …”
Assertion Not checkable as stated
Bragg: First factory ran only 100,000 pounds against two-million-pound capacity
“Having built a factory and all, and geared it up to run two million pounds, and we ran I don't know, a 100,000. There just was no crop.”
Disclosure
Bragg: Bragg Group operated historically almost fully levered with debt
“We haven't shied away from using debt. Although today, our balance sheets are in great shape, but through the years, we've always been, what I would say, almost fully levered.”
Disclosure
Bragg: Oxford Frozen Foods aims to source 50% of blueberries internally
“Our ideal position would be to grow half them on our own farms and buy half from farmers.”
Assertion Contradicted
Bragg: Honeybee rental is the single largest cost in blueberry farming
“The biggest single cost are the rental of honeybees for pollination.”
Disclosure
Bragg: Oxford Frozen Foods is the largest beekeeper in Nova Scotia
“We're the largest beekeeper in Nova Scotia by far, and one of the largest in Canada, because we couldn't get the bees, so we had to start our own apiary.”
Assertion Supported
Bragg: Honeybee pollination increases blueberry yields to 8,000-9,000 lbs/acre
“I think if you had no honeybees imported and relied on, on local pollinators, you might get a thousand to 1500 pounds. If we use four to five hives, which is considered high, but we can grow 8000 or 9000 pounds.”
Assertion Supported
Bragg: Oxford Frozen Foods is Canada's largest carrot processor
“We're the largest carrot, certainly carrot processor in Canada, maybe in North America.”
Disclosure
Oxford produced McCain onion rings under a one-page agreement for 50 years
“We had a one-page agreement, which I still have, which gave us the exclusive right to make onion rings under the McCain label in Canada, and we've been doing that for over 50 years”
Disclosure
Bragg: Oxford Frozen Foods' Advantage Is Operating Across Three Microclimates
“Our advantage is that we are in three, three different microclimates.”
Disclosure
Bragg: Oxford paid up to 2x market price for 3,000 carrot acres
“We bought About 3000 acres of carrot land in the Annapolis Valley at premium prices. Why would you pay premium? We need to secure the base. That's where we grow our carrots, and we were, you know, doubling the production of carrots, so we need the land base, i…”
Disclosure
Bragg prefers buying Berkshire stock over overpaying for acquisitions
“We'd rather buy more Buffett stock than pay too much for an operating company.”