USA

Warren Buffett’s public Kraft Heinz criticism is extremely unusual for the typically passive owner

Wall Street shared Buffett’s disappointment.

Kraft Heinz shares fell to 7.6% on Tuesday announcement Early that morning, but he took back some of this loss, he finished only 2.4% for the holiday -corted week.

Will Buffett’s unhappiness encourage Berkshire to sell a part or all of his shares?

“We will continue to do everything we think is in the best of Berkshire,” he did not ignore it.

“If it approaches selling our stocks, we will not accept the block offer unless the same offer is made to other Kraft Heinz shareholders.” I mean, if someone doesn’t want to buy the whole company.

Becky reported that Buffett did not like the additional 300 million dollars of additional general expense costs to apply the division next year and that it would not be very good.

“It was absolutely not a brilliant idea to bring them together, but I don’t think separating it will correct it.”

In 2013, Berkshire merged with Brazil’s 3G capital management to buy HJ Heinz for $ 23.3 billion.

Two years later, when Kraft Heinz was combined with Kraft Heinz, Berkshire appeared with more than 325 million shares in the new company. The agreement is closed In July 2015.

Berkshire’s shares granted good results immediately after the merger, while in 2016, it rose to approximately $ 30 billion, sharply recording for the next three years and leaping about $ 10 billion since 2020.

Inside Letter to 2015 shareholdersBuffett wrote that stocks were $ 9.8 billion to Berkshire, so a general loss is about 1.0 billion dollars.

Berkshire He wrote $ 3.8 billion in investment To better reflect the market value in the second quarter. Did it 3.0 billion dollars writing In 2019.

One 2019 live cnbc interview Becky Quick and Buffett, Berkshire’s role in the unification of Kraft Heinz, regretted some regret and said that he was “more” for a good company.

Since the closing of the merger, the stock price fell by 69%.

The division did not come as a complete surprise.

In July, Wall Street Journal Kraft Heinz reported “He was turning a large part of the grocery store, including many Kraft products.”

Two Berkshire Manager resigned from the KHC board in May The company announced the “continuous evaluation of strategic transactions to unlock the shareholder value”.

These resignations led to speculation when Berkshire could start sale, “Create a protrusion on the stock” According to an analyst.

This protrusion is even more ominous now.

Since Berkshire has more than 10% of KHC shares, you will have to report any open market sales within two working days, which may cause other investors to sell.

Buffett is not alone in the criticism of division.

Financial times Writes, “Kraft Heinz’s problem is that he cannot respond to changing consumer tastes.” He thinks that the division is “a less bold strategic pivot and more, the result of the years of low performance caused by giving priority. [UK spelling] Cost deductions in innovation. “

Reuters columnist Jennifer Saba “Re -making [of] Sausage … it is unpleasant to be seen as usual. “

“Although it produces a wide variety of brands, the” incredibly optimistic “financial engineering endless wheel and processing cycle” seems to be only a Yucky flavor.