The Oracle of Omaha, Warren Buffett, spent the past quarter fine-turning his investments. According to
filings, the owner of Berkshire Hathaway Inc.
boosted his firm's stakes in Kraft Foods Inc. and Wells Fargo & Co., eliminated its stake in Ameriprise Financial Inc. and has cut its stake in Iron Mountain Inc., from 4.7 million shares to 3.4 million. Of those moves, perhaps the most interesting was Buffet's increased stake in Kraft to
132 million shares.
Continue reading below
The news of Buffett's nod prompted Kraft's shares to rise. However, Buffett's investment comes at a curious time for both Kraft and Berkshire Hathaway. For starters, Kraft is struggling with higher commodity prices leading it to announce last week it will raise prices.
Additionally, Dealbook speculated last week that Buffett was building a stake in Kraft to eventually acquire it. Now that could be interesting because Buffett not only holds shares in Kraft, which makes cookies, but also Mars Inc., which is in the process of buying Wm. Wrigley Jr. Co., two confectionery competitors of Kraft. - Maria Woehr
Comments
How do Warren Buffett and Charlie Munger frame an investment decision? I think you might like my new self-published book. My book, "The Four Filters Invention of Warren Buffett and Charlie Munger" examines each of the basic steps they perform in framing and making an investment decision.
Warren Buffett mentions the Four Filters this way: "Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag." These Four Filters can enhance the probability of our investment success. My book is available at www.frips.com and, it includes a valuation case example of Kraft, KFT.
Here is a 10 min. audio book summary:
http://www.frips.com/4fsummary.mp3
Bud Labitan
www.frips.com