Warren Buffett’s Berkshire Hathaway is holding onto a stake in struggling food company Kraft Heinz, despite years of underperformance. However, the stage is set for a drastic improvement in the company’s business. New CEO Carlos Abrams-Rivera has outlined a plan to reignite growth, focusing on unique strategies for each product line and ramping up innovation.
Abrams-Rivera aims to cut $2.5 billion in unnecessary spending by 2027, with $1 billion already saved. While initial results are mixed, the company’s long-term prospects look promising. The economic environment is set to improve, with Goldman Sachs predicting a 2.5% expansion and rising worker compensation budgets.
Despite the challenges, Buffett’s continued investment in Kraft Heinz suggests there may be more reward than risk. With the stock at a multiyear low, a major turnaround could spark a self-fueling rally. Investors who take a closer look might find value in this underperforming stock, making it an attractive option for those looking to capitalize on potential upside.
Source: https://www.fool.com/investing/2024/12/07/1-warren-buffett-stock-could-winning-year-2025