Recently, I find that share prices for some food companies in US are down. Companies like Kraft Heinz, Campbell Soup, General Mills, Conagra Foods, Kelloggs etc. So I did a rough check on them plus other companies dealing in foodstuffs like instant noodles. I found that the operating margins of Kraft Heinz to be much better than the rest.
Reply to @Unintelligent_Nerd : I had only glanced through the presentation slides before this. Now reading the transcript. Looks interesting for business perspectives, even for those not interested in KHC. :-)
“Warren evolved through three stages. He went from buying cigar-butts and getting the last few puffs for free, to buying great businesses at really cheap prices, to buying and holding great businesses at so-so prices. And maybe even this new area of buying weird securities from crappy businesses at better than market prices—like B of A [Bank of America] preferred or whatever. I’m still in phase one. We’re still buying cigar butts, there’s a good business there in buying them and it’s a lot of fun.”
-Klarman
I think very few find looking for the odd cigar butt fun. It's so boring and isn't intellectually stimulating enough for most people. It's really hard to feel useful as an analyst when all you're looking for is something like "X trades for $1, has more than $1/share in net cash and the business isn't losing money". But for those who find treasure hunting fun, can have lots of fun doing this (and it's oddly profitably as well).
Recently, I find that share prices for some food companies in US are down. Companies like Kraft Heinz, Campbell Soup, General Mills, Conagra Foods, Kelloggs etc. So I did a rough check on them plus other companies dealing in foodstuffs like instant noodles. I found that the operating margins of Kraft Heinz to be much better than the rest.
An interesting article on how 3G Capital acquired companies and improved them.
Buy. Squeeze. Repeat.
http://fortune.com/kraft-heinz-merger-3g-c...
And also this one that has a chart of its operating margins.
https://www.bloomberg.com/view/articles/20...
Reply to @Unintelligent_Nerd : I had only glanced through the presentation slides before this. Now reading the transcript. Looks interesting for business perspectives, even for those not interested in KHC. :-)
“Warren evolved through three stages. He went from buying cigar-butts and getting the last few puffs for free, to buying great businesses at really cheap prices, to buying and holding great businesses at so-so prices. And maybe even this new area of buying weird securities from crappy businesses at better than market prices—like B of A [Bank of America] preferred or whatever. I’m still in phase one. We’re still buying cigar butts, there’s a good business there in buying them and it’s a lot of fun.”
-Klarman
I think very few find looking for the odd cigar butt fun. It's so boring and isn't intellectually stimulating enough for most people. It's really hard to feel useful as an analyst when all you're looking for is something like "X trades for $1, has more than $1/share in net cash and the business isn't losing money". But for those who find treasure hunting fun, can have lots of fun doing this (and it's oddly profitably as well).