The recent plunge in Heinz-Kraft shares reminds us that even Warren Buffett can make a mistake. A couple of years ago, it might have seemed as though the Sage’s portfolio was impervious to downturns, given its heavy focus on the basics: food chain, railroads and insurance companies. As it happens, his bet on such time-tested brands as Oscar Mayer, Jell-o, Kraft Singles, Kool Whip and Cheez-Whiz has tanked, a victim of changing tastes. Even KHC’s venerable Maxwell House label has fallen on hard times as consumers weaned on Starbucks have developed a jones for something more exotic than a cup of joe. No one is crying for Buffett, though, and he himself seems unconcerned. If you owned auto-insurance giant GEICO and Burlington Northern Santa Fe railway, which can carry a ton of freight 500 miles on a single gallon of diesel fuel, would you be worried?
Even Buffett Can Make a Mistake
- February 26, 2019, 5:40 am
Down near 70% of a ‘recession proof’ issue, Railroads? The history of the 1st empire built in railroads move to the verge of collapses within months at 1 point. As, the BDI Index says it all for its next lower low coming now right on target in this cycle. Germany has new cars line up back to back and parked for ‘months’ using airport runway space, as the U.S. has sky rocketing car loans at break level failure rates insurance stocks go poof!
Turn your your head to long one way and you get a pain in the neck.
Investments are great as long as they remain ‘above’ the price you bought them at.
Have a great day.