Author notes Berkshire may sell its 27% Kraft-Heinz stake but argues KHC is attractive at current valuation with 7% dividend yield and ~8 PE offering margin of safety.
KHC — LONG The author argues Kraft-Heinz looks attractive at current prices despite Berkshire's potential exit of its 27% stake. The rationale is a 7% dividend yield and PE of ~8, which even assuming just 2% growth provides a decent margin of safety. The catalyst is Berkshire's indicated sale under new CEO Greg Abel, which the author views as not undermining the value case.
The thing is KHC appears to be pretty good at this price. Dividend Yield of 7%, PE \~8. Even if you assume growth of just 2% - there is a decent margin of safety.
This Reddit post, published January 21, 2026, features u/pravchaw discussing KHC. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/pravchaw · Tickers: KHC