Friday, February 15, 2013

Warren Buffett and Heinz: Why He Made the Investment | TIME.com

Warren Buffett and Heinz: Why He Made the Investment | TIME.com:

"As market watchers know, he’s considered a value investor—someone who buys companies when they’re cheap—which is a strategy he learned from his Columbia Business School professor Benjamin Graham, author of the geeky classic The Intelligent Investor. He’s also partial to the market’s plain vanilla: low-risk companies with rock-solid balance sheets. In this case, Heinz didn’t come cheap. Buffett’s Berkshire Hathaway and 3G paid a 20% premium for Heinz’s shares, which makes them pricier than those of most packaged foods companies (aside from a few elite brands like Nestle and Hershey). For Buffett, the real value of Heinz was its steady stream of cash and safe strategy."


BTW SIMM owns Heinz

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