Value Investing by Warren Buffett???

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:

 

Anticipation no longer. After years of eyeing H.J. Heinz, Warren Buffett forged an agreement to acquire the ketchup maker in the largest deal in the food industry's history.

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?