KHC Stock Analysis and Buffett's Investing Strategy

KHC Stock Analysis and Buffett’s Investing Strategy is something very interesting but not for the average stock market investors. In any case KHC stock could be better with a larger margin of safety.
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38 thoughts on “KHC Stock Analysis and Buffett's Investing Strategy”

  1. I love that he goes into the store, Peter Lynch style. Alls I know is in Vietnam the ketchup tastes like crap, but luckily they sell Heinz at my grocery store and it only costs $1. 🙂 Nothing like the original.

  2. Kraft Heinz is down 16.5% in after hours trading after terrible results. It's down to $40, potentially could fall more if it breaks that resistance level. Also the SEC is investigating their accounting practices. Doesn't look good but perhaps at this share price now there is a margin of safety?

  3. KHC from $95 to $35- that is value investing with moat and margin of safety. Buffet made a mistake holding on to it too long and Sven still does not realize it 🙂 Buffet has been dumping AAPL stock

  4. I don't think these conventional factory foods companies will be still doing good in the next decades. Coca cola will be okay no matter how but Kraft Heinz, General mills, Campbells, I wouldn't put my money on them.

  5. Hi Sven, how are you today?
    Could you give us your opinion on this stock again, given the recent very bad news and the approach of an economic crisis?
    Basically, what would be your strategy if you had 5% of your portfólio on KHC ?
    Hold or Sell ?

    Greetings from Portugal,

  6. If you invested in Kraft at around the time of this video, you would have lost a significant amount of money by now, while the overall benchmark such as SPY and QQQ have risen considerably…

  7. CEO should be prosecuted for that shtbag quarterly report without any warning notices at all to shareholders. That guy sounded so corrupt to me on the earnings call. Let's see we have a 15 billion dollar write down, plus we are cutting the dividend payment ts 39 percent and oh, dont forget we are being investigated by the SEC. Also, peoples tastes are changing and they are not buying our products as much. All I can say are two letters to the Kraft management team: F U!

  8. This video is a great example of people who have no clue about what they're talking about. Obviously, anyone would have invested would have lost a ton of money by now. As most people do, they simply blindly follow someone else, and in this case its Warren Buffett. All the analysis in the world would not have shown you are revealed to you that this company was screwing with its books. Simply stated it was a scam.

  9. Not that dislike Heinz. But if I can buy cheaper and I can have almost the same product I will buy it. Like the company called no name. It's almost the same. It's made by Loblaws. I will buy KHC only if it's part of an eft.

  10. I'm not too much convinced with these "changing consumer preferences" discussions. Here are my points.

    1. Managers of Kraft-Heinz and investors might recognize changing consumer preferences as well and be able to do something about it. I wonder if they do not if there are any.

    2. No influencer can start a yoghurt. It's an influencer and not a company. The influencer needs a product from a producing company.

    3. Yes, new companies can produce ketchup. But there is this fact of economy of scale and the fact that the companies with the highest margins can recruit the best brains. It's just a question of salary.

    4. Changing consumer preferences: That might happening big or it might not, I just don't know (I need more proof). Maybe not everybody has the time to buy healthy stuff and cock everyday. Packaged food simply saves a lot of time. Amazon probably is riding this trend right now. They started to sell more ready meals in these new stores in Chicago where you don't need to wait in a line for buying the products. You go in, collect your stuff and you pay with your smartphone. Quick and simple. People like to save time (digital and mobile payment).

    And by the way. McDonnalds stocks are up (McDonnalds stores are always full, day and night, it's never empty), Coca Cola stocks as well. And we are talking about changing consumer preferences for ages. Wasn't there this McDonnalds meat scandal? And how does it come that we continue to drink Coke. I mean we don't really know what's in there.

    I will have a look at the company, looking at the risks yes, but trying to see what is going on. Don't want to miss an opportunity due to sentiment, false or even too quick assumptions. General Mills stock rebounded after some consolidation, I think they sell packaged food as well.

  11. If Warren Buffett thinks it is such a great company, I wonder if he put his money where his mouth is and actually consumes any of the unhealthy 'food substitutes this company makes!

  12. I watched the video a third time and I agree more especially to the issues with the balance sheet and the growth perspective. Seems like emotions sometimes gets in the way to really use your brain. "It's cheap now, be quick not to miss out on the opportunity", hard to do but maybe I don't get happy with my investment.
    And I'm only happy if there is quality book value (which the company can sell in case), possitive cash flows, maybe some growth of the company, undervaluation, etc. Will a company like Kraft-Heinz with no growth and already high margins makes me happy? Hm! I think some sort of safety would be something.

  13. Ok, so KHC has been sideways around the $30 range for a few months since the bad news hit. Could be an opportunity or a value trap. But the key takeaway for me is the reminder that Buffet operates at a scale and through investment channels that just aren’t available for us small investors. So just copying his investments will obviously yield much different results. Good video!

  14. I tend to think, these products would do better in a recession (despite the debt), when ppl are not able to eat takeaway, restaurants and fancy whole foods, they sit home with chips, beans and ketchup.

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