Berkshire Hathaway’s Bright Future by Andrew Bary, Barron’s
H/T Dataroma
Warren Buffett is coming off one of the biggest investment coups of his long career with the closing of the Kraft Foods’ purchase of Heinz Holdings earlier this month.
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Buffett’s Berkshire Hathaway invested $4.25 billion for a 50% equity stake in the $23 billion leveraged buyout of Heinz two years ago, along with a partner, Brazil’s 3G Capital. Berkshire made a second $5 billion equity investment with 3G when Kraft unveiled its deal for the ketchup maker in March. Berkshire Hathaway now is sitting on a 25% stake in the new Kraft Heinz — some 326 million shares — worth $25 billion based on Kraft’s recent share price of $77, resulting in a gain of almost $16 billion. That’s a stunning profit in just two years. (3G has a similar gain.)
