Buffett's Boldness: Kraft Heinz Clash, Secret Deals, and a Cash Hoard
Warren Buffet BioSnap a weekly updated Biography.Here’s what’s been happening in the world of Warren Buffett over these past few days and why it all matters. The biggest headline this week is Buffett’s increasingly public frustration with Kraft Heinz. According to Kingswell, he’s been in direct touch with CNBC’s Becky Quick not once, but twice lately, making it clear that Kraft Heinz is barreling ahead with its decision to split Kraft and Heinz despite strong objections from both Buffett and Berkshire Hathaway vice chairman Greg Abel. Buffett didn’t hold back, calling the separation a year-long waste of time and resources, bemoaning the estimated 300 million in additional overhead and the lack of a shareholder vote. While he says Berkshire will do what’s best for shareholders, he made it clear he won’t sell out unless any offer is made to all shareholders equally, and he’s deeply irritated by management’s disregard. Kraft Heinz down approximately 70 percent since the original merger also means Berkshire’s patience is wearing thin, making Buffett’s comments unusually candid and perhaps signaling that a significant portfolio shift could be brewing.That, however, wasn’t even Berkshire’s only corporate drama. After weeks of speculation in the pest control trade press, Buffett’s acquisition of Bell Laboratories, a Wisconsin-based rodent control company, was quietly confirmed when Berkshire added Bell to its official list of subsidiaries. The deal’s financial terms haven’t been made public, but observers are already watching for details in the next earnings report given the secretive but strategic tilt to home-related businesses.On the investment front, Buffett’s playbook has grown even more cautious. As analyzed by AinVEST and the latest 13F filings, Berkshire has been quietly loading up on real estate plays like Lennar, DR Horton, and Pool Corporation, betting on a long-term recovery in the housing sector despite prevailing high-interest rates. Meanwhile, Sure Dividend and AOL report that Buffett’s affection for quality, dividend-paying stalwarts remains intact, with American Express, Bank of America, Coca-Cola, and Chevron staying core to Berkshire’s approach. Even as Buffett’s favorite market valuation metric—the Buffett Indicator—hits 215 percent, a historic high as reported by Barchart on X, he’s been a net seller for eleven straight quarters, hoarding a record 344 billion in cash, holding off even on buying back Berkshire shares.In the courts, Berkshire and Apple got some relief as the Google antitrust trial did not rule out their lucrative default search arrangement, a pivotal win for Apple’s services revenue and, by extension, for Berkshire as a major holder.Buffett himself has kept a relatively low public profile this week in terms of appearances but his phone diplomacy, direct media briefings, and the strategic shuffles in Berkshire’s massive portfolio have generated plenty of buzz among investors and business-watchers. The speculation continues: will Buffett finally trim the underperforming Kraft Heinz stake, and what’s next for his nearly unmatched cash war chest? For now, all eyes are waiting for the next Buffett move.Get the best deals https://amzn.to/3ODvOta
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