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- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 2
KHC is at multi year lows....yielding just north of 6%. Any takers?
No. of Recommendations: 0
I suspect Berkshire will be selling the position.
No. of Recommendations: 0
Would Berkshire ever just buy Heinz from KHC ?
No. of Recommendations: 1
No. of Recommendations: 1
Why would KHC want to sell Heinz? Heinz is their star brand with a wide and deep moat. And BH would not pay a premium for it or get into an auction for it.
3G made a big mistake buying a Kraft at a high price and destroyed a lot of value. I won’t be surprised if they sell off a few low growth brands and keep Heinz and the higher growth brands. That’s what most companies doing asset sales and spinoffs do.
No. of Recommendations: 0
Exactly , the only thing Berkshire should ever want from KHC would be Heinz.
No. of Recommendations: 2
I sense the same thing, that we will sell KHC. Board members are now leaving and we’ve had a large opportunity cost holding it over last 12years and 3G…well, they are not Berkshire. Seems like Greg would possibly be more open to selling the position than Warren, but who knows?!
I think it was 2007 when Kraft was spun off from Altria. I sold the Kraft shares quickly but the Kraft share price actually rose early after the spinoff before falling. Was always a strange combo- tobacco & cheese whiz!😁
No. of Recommendations: 2
Do you remember Reynolds/Nabisco too !Cookies and smoking . Great book book though
No. of Recommendations: 1
Do you remember Reynolds/Nabisco
It’s been a while, but my recollection is that big tobacco was “laundering” cash. Buying reputable food companies, and then a few years later, spinning them off in non-taxable distributions to shareholders.
No. of Recommendations: 0
Yep good old F. Ross Johnson and LBO
No. of Recommendations: 2
>>>Cookies and smoking
Makes sense to me. Unhealthy packaged goods that don't appeal to me but some folks find habit forming~~
Probably makes more sense than Noritake, whose two divisions make vacuum fluorescent displays and dishware. Oddly enough, I've bought both.
Jim
