# Kraft Heinz Co



## Arizona (May 31, 2015)

What do you guys think of this merger between H.J. Heinz and Kraft foods group open to public on Monday?

Will cost a premium with a P/E of 55 vs ind avg of 33 but there's some heavy hitters on the board (Warren Buffet's Berkshire Hathaway, Jorge Paulo Leeann's 3G capital).

Looks to be shaping up to be a keeper in my books.


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## tkirk62 (Jul 1, 2015)

I can't say I'm familiar with the fundamentals of either company but it is at least somewhat similar to the Tim Hortons and Burger King merger, which Buffett and 3G were behind as well. After that IPO the stock from about 45 to 57, then has been sliding since. I think if it was something that interested you you could like make good money within a few months with a trade.

But also like you said, it could be a good buy and hold investment. You should just watch the valuation because there is a risk of irrational exuberance by the market with anything that has Buffett's name attached. If I were going to play it I would get in as soon as I could, sell in a couple months if I had a decent profit then wait to get in at a lower price, s people would have been able to do with Restaurant Brands International Inc. Hindsight is 20-20 though and I'm likely mistaken for expecting it to play out the same way again.

Definitely an opportunity that warrants further research and due diligence.


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## Just a Guy (Mar 27, 2012)

IPOs are usually very profitable...about a month or two after the euphoria wears off and the price comes down. After that, if it's a good company, the prices tend to go up. I wouldn't buy during the feeding frenzy though.


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## My Own Advisor (Sep 24, 2012)

Same. Wouldn't buy now. Wait for the hype to wear off.


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## MrMatt (Dec 21, 2011)

Bought my BRK years ago, I'm happy to let BRK manage that side of the business. i've written about the Heinz deal, it was an amazing transaction.


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