H.J. Heinz Company (HNZ): Buffett will Succeed

People at the Lex Column were not supportive of the deal, but I am sure time will prove them wrong. Many were the people who opposed to the $52 billion merger between InterBrew and AB that gave birth to AB InBev, but cost cutting and great brand management proved those who opposed the deal wrong. I think this shall be the case one more time. Heinz has plenty of room to grow internationally and find growth through smart acquisitions in emerging markets from Brazil to Russia and beyond.

As I have written many times in this blog, valuation multiples are static but a company’s performance is not. My opinion is clear. Buffett and 3G will do it again. They own a fantastic business that is going to yield cash for decades if not centuries. Go long Buffett has been a great investment idea for more than 50 years. It seems nothing will change.

The article Heinz: Buffett will Succeed originally appeared on Fool.com and is written by Federico Zaldua.

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