Friday, August 5, 2011

Buffett on Kraft: "I Have Oreos for Breakfast"

This Fox Business News article provides some insight into Buffett's reaction to the split of Kraft (KFT):

Buffett to FBN: Kraft is Already Good Business, Now it Will Be Two Good Businesses

Kraft's CEO was heading to Omaha to tell Buffett that she wanted to split Kraft into two businesses. He apparently supports the split.

"I'm fine with it. Irene is a good manager and she does a good job..."

Buffett wasn't a big fan of how much Kraft paid for Cadbury. In fact, he was a very vocal critic. He said this to CNBC about the deal at the time:

Buffett on Kraft-Cadbury Deal

"...I think Irene has done a good job in operations. I like Irene. I mean, she's been straightforward with me. We just disagree. She thinks it's a good deal. I think it's a bad deal."

More from the FBN article:

"I'm sure she would have preferred I was supportive of the Cadbury deal but there's no edge or anything between us."

When asked if he'd hold onto the shares that Berkshire Hathaway (BRKa) owns...

"Listen, I have Oreos for breakfast so I'm in the stock with both feet." He added, "It's a good business and it'll be two good businesses."

Kraft is currently Berkshire Hathaway's 5th largest holding in its equity portfolio behind Coca Cola (KO), Wells Fargo (WFC) American Express (AXP) and Procter & Gamble (PG).


Long positions in all stocks mentioned

This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.