Investing is a hard business. You can’t take anything for granted, and there is no easy and fast formula to predict how well a stock will do. It’s hard to determine whether a company — even a leader in a steady-as-it-goes business — will continue to deliver profits or appreciate versus the competition. Case in point: Kraft Heinz (Nasdaq: KHC). This consumer-staple company has turned out to be anything but safe and steady. You’ve likely heard by now that shares of the world’s fifth-largest food-and-drinks company lost 27% in a single session on Friday, February 22. And Kraft halved its… Read More
Investing is a hard business. You can’t take anything for granted, and there is no easy and fast formula to predict how well a stock will do. It’s hard to determine whether a company — even a leader in a steady-as-it-goes business — will continue to deliver profits or appreciate versus the competition. Case in point: Kraft Heinz (Nasdaq: KHC). This consumer-staple company has turned out to be anything but safe and steady. You’ve likely heard by now that shares of the world’s fifth-largest food-and-drinks company lost 27% in a single session on Friday, February 22. And Kraft halved its dividend, too. A whopping $15.4 billion write-down of its acquisitions of Kraft and Oscar Mayer was just part of the bad news; the company also disclosed a U.S. Securities and Exchange Commission (SEC) investigation of its procurement accounting practices. Talk about risky… Before that one-day nosedive, KHC had already lost about half of its value. And now, even Warren Buffett, arguably the best investor in the business, laments that he overpaid for Kraft (Berkshire Hathaway owns 26.7% of the company and lost more than $4.3 billion on that fateful Friday). (This article from CNBC gives a… Read More