Warren Buffett Buys Heinz Ketchup – What Does It Mean for Investors? [RADIO SHOW AUDIO]
Recent news that Warren Buffett and friends are buying HJ Heinz Co. is significant for individual investors for many reasons. In today’s radio show we discuss how corporations have been behaving much like consumers: trimming expenses and not spending more than they have to.
But when the Oracle of Omaha spends, people listen. There are two main messages here.
First, Buffett believes the economy is showing upside potential (The price paid for HNZ includes a 20% premium.) While paying premiums are the norm in the M&A world, investors need to recognize that one of the greatest investors of all time is jumping in with both feet at a price like this.
Secondly, we don’t ignore the fact that HNZ is a BORING COMPANY. No one gets excited to invest in a consumer staple. Nobody wants to recommend boring investments anymore. But guess what? It may just be the special sauce in your portfolio.