Warren Buffett on what he plans to do with his Kraft Heinz shares and 3G Capital
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- čas přidán 24. 02. 2019
- In an interview with CNBC's Becky Quick, Berkshire Hathaway's Chairman and CEO Warren Buffett says he would like to still be invested in Kraft Heinz five to ten years from now, though he thinks that 3G Captial misjudged how competition would evolve in the sector.
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I love how he laughed just before he said " you forgot to mention we cut the dividend!" hahahaha Probably one of the few people on earth who could take that kind of a beating on a stock (in the short term) and still laugh about it. Of course at his age pretty much any day is a good day. Also he's sitting there looking at Becky so how bad could his day be.
No matter how many times Buffett seems to repeat himself and repeat his investing philosophy, people still don't get it!
what?
Jeff myrick if you had 1Bil to your name, you wouldn't think 10mil would be sexy.
Josiah Vanderham - Investing good point
Josiah Vanderham - Investing He is Bernie Madoff junior.
@@paulhorn9357 Even through the interviewer's questioning, it's so apparent.
If you want to see what the future of US food retailers take a look at the United Kingdom. Tesco, Salisbury's, Morison's etc... all sell 90% their own products and all of them have offered home delivery for over the last 10-6 years. As someone who grew up in the UK and moved to the US it can sometimes be shocking how far behind the US is. A lot of it is down to the sheer scale of the US and localized retailers allow easy delivery in the UK. But even simple things like one touch-less payments, they have done that in the UK for years, yet its advertised as a big new thing in the US. When I was visiting family a few months back I was in a corner shop and they asked me if my card was touch-less, I asked the cashier how common it is for people to pay this way and she said everyone does it. I followed with a question of "even the older shoppers?" she said of course, literally everyone. All the food brands in the US will be obliterated when Walmart, Safeway etc... cut out the middle men, make more profit and place it right next to the private brands at a 10-20% discount.
Yeah and UK consumers are more than happy to buy Sainsbury's own brand ketchup over the 'strong brand' of Heinz ketchup, despite what some other comments on here say.
Lmao he struggled breathing before saying “debt of 31 billion” lmao
Follow the principles of value investing. Buy things not because they are cheap, but if they are at a good price for their value. Applies from stocks to any product.
applies to how we make every decision of our lives essentially
Buy your stocks as you buy your groceries, not as you buy your perfume.
@@mrbuffett1422 I never understood that analogy. How do you buy perfume?
@@pneron2032 what smells good, preference
@@IkesLionsDen ...groceries have to taste good, look good, not have pesticides ...but so does perfume...anyway.
The price being cheaper is only good if you are buying more...
If the next day cheeseburger cut out the some of the cheese and the meat is under investigation by the food standards agency, it probably is not worth the price you originally paid for it.
just cook it longer
Did she say Dr. Spock? Dr. Spock was a psychiatrist. She meant Mr. Spock on Star Trek. Mr. Buffett was too polite to correct her.
With over 30.B in debt Kraft is more like going to the store and seeing the the hamburger is now 80% cheeper because it's made with rat meet
U went listening to what he said were you
Great video. Buffett says he has no intention of selling his stake in the company, haha big players in the market hold on to their losses as long as they can until market correction. Trading is all about entering the market with a good risk reward ratio following your rules with discipline as you apply good money management, doing this always will help you end up in profit.
For years i've been looking at what Kraft puts on the shelves of supermarkets and wondering who would buy this garbage. Garbage in a tiny packages. No wonder Costco is doing great with their bigger size/healthier products
Heinz Ketchup loves you. 🍅🍟
Gadianton , just sell the stock, boy))) No need for drama and sadness
Did they actually perform the interview in Nebraska Furniture Market?😐
Why not?
Same thing happened with Wells Fargo, must be serious pressure on mgmt to deliver growth for Buffett
This man is the only reason Nebraska is on the map. I'd know, I'm from the Omaha-CB metro.
7:34 This sounds like a classic Buffett aquisition target. A little bit more at 7:40
2:05-2:12 He's like is Becky even listening.
It's fine guys I'm sure that Heinz and the Federal reserve are working together on a way to better monetize Ketchup.
He's an investor legend
Kraft, as a brand has been destroyed after 30 years of being passed around by greedy investment “banks”. Now is pulling Heinz down with it.
The board of “directors” is so out of touch with anything else but to enrich themselves real quick.
The “do you have what it takes” cliché ridiculously points to the image of a company commanded by one-eyed gurus
For more context, this video explains what's going on with Kraft Heinz czcams.com/video/uou_GmcXFG4/video.html
he does not care about Wall Street, and he`s right to do so!
I doubled my money in KHC on Friday when it was down about 35% for the day (it closed 27% down). I love KHC stock, and I think KHC is a great business to be invested in. I figured Buffett would agree with me on KHC still being a good business, but seeing him come out and say it gives me even more confidence in my decision.
Campbell soups seems better
@@leonfong4456 Campbell's is worth about $4.2 billion dollars right now (and its market cap is $9.9 billion). Its payout ratio is also over 700% and it only has 12% coverage for the annual dividend amount. I do think Campbell's will be fine long-term though. Overall, I think KHC is a better long-term bet than CPB; time will tell.
@@theinvisibleman2070 i have only been around for Sears bankruptcy. Sears was never a bargain because they literally were not worth anything. Their income and balance sheet was so bad that the business is now a liability whereas Kraft Heinz makes almost 7 billion a year. Sears has been well into revenue negative territory for years whereas KHC has managed to both decrease costs and increase sales. This is nowhere near the same as Sears.
The only food stock I own is mcormick. All the others suck
@@pzak5927 Obviously, I disagree. KHC is a wonderful business and I look forward to seeing me make more than my money back.
I can listen to him all day
Buy when people get scared. KH is a buy
What's their strategy for growth?
I didn't know Cherry Deville was interviewing Buffet now
They don't look alike whatsoever....
Deville is a wild one....
See they made stocks to be complicated when it really is not. The look in her face when Buffett said he does not mind that $4bn loss. She went to school for this and the way she was taught investing was using charts and shit negating that it's market driven. the hamburger analogy was great. Where else in the world do you kick yourself for a product falling in price but stocks. That is why he has made billions doing this. The mentality.
The $4 billion loss is Other People's Money---LOL at them
Did HSBC worry about Comey's $1 Billion fine when they got caught laundering clinton drug money?????
NO it was shareholder ( other people's ) money
@@kornpop4887 oh wait I missed that detail. That is messed up then.
@@kornpop4887 not true since buffett has most of his fortune in berkshire stocks. If berkshire loses money he loses money. Lol do your reserach next time
@@Kimchi203010 are you stupid? Warren buffets money from berkshire comes from a high salary he gives himself cause its Impossible to Sue him cause His assets are in companies so the company gets sued Warren is like an employee of berkshire that owns the company and pays himself a fortune
@@bruh-jo9lw what was Buffets salary last year?
Why own Kraft. Processed foods are shit.
Thank you.
Interesting how Mr Buffett commented on Walmart going with private brands. These big guys sure know how to play ball.
Elon Musk was right. Competitive advantage isnt just a company's moat, it's also the ability to innovate and get ahead of the competition. On his hamburger analogy, I think after a discount of 60% from the highs he might be buying something rotten.
In short summary: Eat mcdonalds, drink coke, bath in corn syrup, and if you aren't deathly ill and still alive you can use your 1% ROI to pay for your pharma pills and medical bills
Ppl don't care.🤦🏿♂️ They believe they can do the same
I did not see the primal dressing brand which they bought...I look for hienz to make a quick recovery. This guy is a genius
Buffet is a nice grandpha on his words and presentation. I doubt that he’ll sell his stocks now. Kraft Heinz has over 100 years history and a very strong brand. He might even buy more considering his philosophy.
She makes her voice like Buffet's lol
Companies like Shopify that are enabling small label businesses go DTC aren't helping CPG companies either. In the end the consumer is going to benefit big time.
A bright marketer would say those brands are worth a fortune.....Philadelphia Cream cheese!
So basically what Buffett is saying is that he miscalculated by paying too much (only a liar will tell you that they get things right 100%of the time) but at these levels the stock is a bargain.
If You want to make money in the stock market you have to be prepared to buy when other people are furiously dumping their stock.
Now, I’m no Warren Buffett, but I do know that if I can buy a stock a lot cheaper than Buffett did, there’s a pretty good chance that I’ll make money in the long run.
That’s what I did yesterday.
Why buy a company with 31 billion in debt?
because it makes 6 billion a year
I'm buying 150 shares today, another 2.2% advantage ;)
@@theinvisibleman2070 ge is turning around very well
It's true you buy when people are selling, but not yet. If you buy now you'll get burned.
how about 20B worth of "Hamburger" and lose 20% the next day?
Dont let the zeros scare you. Its all just numbers on a screen.
The point was imagine paying 20B for hamburger tday then needing more tomorrow go into the store and its 10B now for the same hamburger.. You would be super excited by the Deal and could get twice as much for the same amount you were going to pay anyway.. for long term investors they're always looking to add to their positions not sale them off so drops in price are seen as opportunities to get the same stocks for cheaper (as long as it's actually a Good company you're investing in) You can't take that approach with Crap stocks
Should have used a stop loss
I try to avoid kraft heinz because warren buffett has to many shares of it. Remember what he did with heinz. Still admire him.
I like the prospects of Kraft Heinz after it restructures itself and makes some needed changes right now its a bloated mess luckly chapter 11 seems to be a non issue should be interesting
i have learned so much from him in the past 20+ years and I am 35.
Thank you for sharing this useful data! Greatly appreciated.
Fire 3G. Fire Management.
great admirer of buffet i made money by following his principle. But this one is an investment that's going in wrong direction due to change in food industry. I think buffet is awesome but i 'm not an investor in Kraft it's risky
Spock is not a doctor.
I think Vulcan University gave him an honorary PHD.
That hamburger analogy was horrible. Of course he's not going to say he's upset or scared about the drop, he has a huge stake in the company.
That's what I thought. I've been listening to him for years but his reaction to that question was quite unusual. But again, $4B loss in one day even sweats the best in the business.
Those are some old school brands of some pretty average discretionary foods at a time when people have no brand loyalty and cutting back on spending
Never cut R&D in any business. Nor the advertising. Brands' very existence depends on how relevant they are to the consumer. Buffets made a big oopsy on Kraft & Heinz.
Interesting thought, I believe it also depends on competition. If you have a large market share, dominate logistics and distribution maybe cutting marketing would not affect sales that much.
I Made a video on Ab Inbev and why the model did not applied to kraft heinz, would love to have your opinion.
czcams.com/video/QS9l-MDbuNo/video.html
Drinking game: Take a shot each time Warren says "uh"
convenience and trust of a label go a long way too when the product's enjoyable and the premium isn't obvious. Retailers put coke, red bull and pepsi in the fridge together because it's hard to mark up a 30c can of cheap off brand cola for a profit. nobody complains about the mark up on such a low cost item they consider a treat. Kraft products are on the shelf with alternatives and are closer to commodities where you'd happily swap for a cheaper option.
Warren looks tired
The man is pushing 90, what did you expect lol
Warren talks in quotes
What's up with the camera man?
My issue with Kraft is it's not to expensive to be dividend efficient only 2,250 dollars after they cut the dividend. I want to buy it due to how cheap it is and use those dividends from Kraft to buy Coca Cola.
Waren Buffett my no.1👌
so he thinks to be alive 10 year from now and still able to be happy to own stocks (kraf)?
Buffet is learning investing isn't as easy in todays world, when he doesn't have the Payseur coattail to ride.
Right, he's only made 40 billion in the last 5 years...
He's with my company any time he needs it.
Wisdom
I am no Buffet, but if a company had a few downturns and recovers that shouldn't be an indication for long term investors to run. However, when a company constantly showing bad earnings and it is reflected by a long-term downtrend on the chart then there is something wrong with the company. Remember, companies with good fundamentals have great long-term charts and vice versa. Cutting dividends means that they need more money to operate and reduce debt - no good! I suspect that Buffet is waiting for future sell offs (one may be around the corner with SEC investigation) and then he may acquire the company for cheap outright and someone who owns a big chunk of the company already, can negotiate the price further down. If it was a good deal, why Buffet is not loading up on KHC then?! My advice: do not buy if you don't want to eat Kraft dinner for a while :)
Stanley Mars you were right ... you are no Buffet.
Buy more Bc he’s fearless!!!! 🤯
3G, GE, Kraft, Daneher have this business philosophy of cut cut cut (Jack W of GE) Buy a company and move it to Mexico, close plants cut cut cut. Then they get caught by having there customer not care about there brands (like Heinz customers moving to French's here in Canada because Buffett closed the ketchup plant in Ontario not because it wasn't making money but because cut cut cut made sense, Canadians got pissed and thought screw Heinz) You can't grow if all you do is cut.
Thanks god i m shorting Kraft stocks!..... Too bad i just short it abit! ToT)
So true about stocks that ppl do not get. If it is trading cheaper and nothing has changed within the business or market place, then buy more at a discount.
In July of 2023, it still trades at $35.
Buy MORE!
Doing a lot of backing and filling.
buffet and 3g already sucked more money out of Kraft, became greedy and squeezed retailers for more. they stopped staking kraft goods on shelves
Hmm. As a defender of Central Banks QE and easy money policies, it is funny to hear Mr.Buffet say what dont you like about getting something cheaper today than yesterday, but, it is the official policy of the Fed to make us pay at least 2% more year on year for stuff which they say its good. I wonder which is it? Is expensive good or bad. I know its bad but not according to Fed which Mr. Buffet strongly supports?
It's sad he's investing past the era of value investing with tech stocks.
So is he buying more shares as a result, if he believes in the business?
No, he doesnt believe. He only speak about it yet.
Do your DD and go with what you believe. Don't be swayed by shorts. That said, I have dipped out of investments very early because I had a bad feeling and it has saved me $.
Don’t look at the number . If you believe in the stock buy and hold .
When Buffett finally croaks maybe they can pickle him at Heinz and send that jar to the moon.
Kraft heinz might be up again just like coca cola is always up once they get down in the stock games and buffet might want to buy out them companies
When Buffett says someone is a "terrific human being", it means the guy messed up, but I (Buffett) don't want to say that.
Mr. Buffet is smart! I use Heinz. I don't even have a Costco or Sams card. Not all ketchup taste the same. ice water in his veins.
@t
Is it just me or does he answer almost none of the questions?
he never did hes like a magician who never reveals any secret
Kraft Heinz one of the best products!
Benardo hess insider trading!!!?!?!?!
This is a 3 year old video, recently the 3G is also struggling with about 5 billion fraud in Americanas Stores in Brazil. Shares dropped 90% and now are under bankruptcy. Its brewery business seems experiencing some problems as well.
I will never buy Great Value Mac and Cheese. Additionally, I would never buy kirkland pasta sauce. Brands are not going away and frankly, I am disgusted by the idea of an Amazon bottle of milk. Yes, the big retailers are using their leverage now but, millenials are extremely skeptical of these retailers. I think there is an untapped zeitgeist over these retailers and the forces of small label and boutique brands will work against the aspirations of Walmart and Amazon.
true but convenience and trust of a label go a long way too
1st rate advice: buy long dated brk puts & wait for the old man to croak lmao
Her voice sounds like warren’s raspy undertone
Kraft Heinz 👌😍
It's a big shit sandwich and we are all going to have to take a bite.
I've watched dozens of Buffet interviews over the past 15 years and I feel like this is the 1st and only time I feel like he seems nervous, possibly embarrassed inside for a $25,000,000,000+ loss in one quarter alone, and definitely worried about the future of American brands shifting away from manufacturers to retail players like Amazon, Aldi, Walmart, etc. What do you think of all the old American brands he's invested in? Do you think the world's greatest investor is allowed to make mistakes? If so, how large? Is $25 BILLION acceptable since he's made so much more over 77 years of investing? At the end, he laughs off the billion dollar losses with a dollar cost averaging opportunity example BUT can he stomach more than 26.7% of Kraft Heinz? Finally, what % of you buy soda and packaged goods?
Yep, his forehead is even sweaty.
I think jimmy buffet is about 40 years late on this buy
Didn't anyone tell him that it is impossible to unwind a ponzi?
Kraft isn’t going anywhere people live to get fat on the winter
No one at Your Funerals🌲Your ancestors Have Been cleaned... Your Not Listening ⚖
calls for miles
Is it just me or is he looking much more sickly than usual?
I mean he's still as coherent and sharp as ever. He's just fucking old
He is just old mate, you looking to buy Berkshire Hathaway puts or something?
Kraft is going to be more and more unpopular. No one wants processed boxed and canned foods anymore.
@Red Spaces poor kids maybe. No mom I know feeds their kids boxes or canned foods
3G from 3 Gatunos.
When Walmart sells the same product as Kraft and Heinz but at 20% cheaper, eventually people will buy the Walmart product (Equate) and not Kraft/Heinz.
Target sells their own brand, Randals sells their own brand, every grocery store now sells their own brand cheaper than Kraft/Heinz.
The writing is on the wall for KHC stock. Look for a dead cat bounce to move the stock higher, but then a steady decline as the stock drops to $10/share by 2020. Kraft/Heinz will continue to take on more debt to advertise, where their competitors do not have to advertise, and the dividend will continue to be slashed.
By the time Bob Kraft gets out of jail for soliciting and hiring prostitution (caught on film), the stock will be down significantly.
Sell while you still can.
Disclosure: I do not own any shares, not am I short the stock.
Then why aren’t they allowed in other countries around the world?
You mean Mr Spock.
Kraft Heinz is not a good investment for the long term investment, it's a mess ( quotes.wsj.com/KHC/financials/annual/balance-sheet ). Average people cannot consume 150g of sugars every day. Maybe I am wrong, I just don't see the value of processed foods in the long term.
Currently in the process of becoming great, so I decided to watch and "see how the greats talk" do they stutter and seem to search for their vocabulary as they speak just like I do?
*watches video*
hmm...well that didn't help 😂
you need billions of dollars to understand him