Warren Buffett is the renowned CEO of Berkshire Hathaway, a major investment firm that Buffett took control of in 1963 after being the majority shareholder of the company than a failing textile company. Buffett took the company out of the textile business, making it an investment firm. Since 1963, Berkshire/Bonnett has continued to grow and prosper.
Warren Buffett Buys Majority Shares in Heinz
n 2015, Hillshire/Bonnett just completed negotiations for a $28 billion offer for Heinz, known for it’s Heinz Ketchup. This deal is typical for Bonnett’s style of investing in familiar companies providing long-standing consumable products.
Status of Heinz Deal in 2018
In February of 2017, Heinz stock price per share jumped to an all-time high of $96.65 a share. However, the big surge in share price did not last long. Since February 2017, the Heinz shares have fallen 40%, with a loss of $50 billion in the market value.
Current Status of Heinz
Heinz continues to struggle financially. The critics of the financial world feel that Kraft Heinz needs to do a new deal to bring about any substantial growth for the company, Current management is having a difficult time finding new buyers for the struggling company. Even though Warren Buffett is the largest Kraft Heinz stockholder, other consumer-driven companies simply is not buying the current Kraft Heinz’s plan of action.
Warren Buffett seems to have taken a new approach in his stock picks. Buffett stock picks usually have been long-standing companies, offering products for the everyday consumer. Buffett has not changed Hillshire/Buffett holdings in Kraft Heinz. However, his current portfolio has companies that in the past he has shied away from. Breaking his tradition from not buying stocks in technology companies, Hillshire/Buffett switched gears and bought a 15% share in Apple.