Just For Thinking ....
Heinz: So Boring It Just Makes Money
By Chris Nichols | The Exchange – 6 hours ago
Individual investors are getting another lesson in the
joy of boring, as Warren Buffett, the master of banal who's only one of
the richest people on earth, said he'll be part of a group that's buying
ketchup maker H.J. Heinz (HNZ).
From CNBC:
Berkshire Hathaway and 3G Capital Management will pay $72.50 a share, or $23.3 billion, for Heinz — a 19 percent premium to the stock's all-time high. Including debt, the deal is valued at $28 billion.
Shares of Heinz were up nearly 20 percent in early trading following the announcement. (Click here to track the stock's reaction to the buyout news.) Although Heinz shares briefly traded above the offer price, Buffett said he had no intention of raising the offer price. That move in the stock may have reflected the value of the dividends Heinz will pay ahead of the deal's closing.
Createwealth8888:
Look at the chart!!! The purchase price.
Berkshire Hathaway and 3G Capital Management will pay $72.50 a share.
What School of Value Investing is actually practised by Warren Buffett and not commonly understood by retail value investors?
Anyone got anything to comment?
Posts
He buys Good company at Fair price... He properly knows that Heinz has high intrinsic value that we don't see. :(
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