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since Berkshire owns a bunch.

https://www.cnbc.com/2024/04/09/3g-capital-quietly...

3G out

"Brazilian private equity firm 3G Capital quietly sold off its 16.1% stake in Kraft Heinz
in the fourth quarter, nearly nine years after masterminding the blockbuster merger of Kraft Foods and Heinz with Warren Buffett.

The sale marks the end of an era for 3G. The firm’s influence over Kraft Heinz had been dwindling in recent years as its number of board seats slipped from three to none by July 2022.

“3G has not been involved in the management of Kraft Heinz, nor have they been on the Board for several years. They had continued to be an investor and were treated as we do any investor,” Kraft Heinz said in a statement to CNBC. “We did learn from their recent filing that 3G exited the Kraft Heinz stock entirely in 2023.”

The company added that Buffett’s Berkshire Hathaway, its largest shareholder with a 26.8% stake, is a committed long-term owner."

3G's underperformed by quite a bit over the last 5-10 years.

AB Inbev
Restaurant Brands
Kraft Heinz

Their CPG and consumer brands M&A playbook worked for a good while.

Kraft Heinz is not buying back stock, one would think and hope that if Buffett/Berkshire at 26% is helping guide this decision, slowly but surely, if they keep at it, Berkshire will ultimately own the whole thing, long way to go obviously, but if they're repurchasing should be a good value here.

Sometimes I wonder if Berkshire should simply take the excess cash flow that is not used for buybacks and invest in the indices. Some combination perhaps of the total stock market index, S&P and QQQ.

the equivalent of a Berkshire sovereign wealth fund !

It would be instructive to hear from 3G their learnings from these, and why their earlier playbook stopped working. Anyone have a recommendation? Book or report etc. ? Much appreciated.

From comments from Buffett and Munger, the zero based budgeting and super-aggressive approach to pruning out management layers defines the 3G approach. Consumer brands have a history of accumulated fat.

Also would like to thank the creators of this site! I have missed this since TMF. Thanks to the thoughtful posters here!!



<<<<3G's underperformed by quite a bit over the last 5-10 years.

AB Inbev
Restaurant Brands
Kraft Heinz

Their CPG and consumer brands M&A playbook worked for a good while.>>>>>

3G out

"Brazilian private equity firm 3G Capital quietly sold off its 16.1% stake in Kraft Heinz
in the fourth quarter, nearly nine years after masterminding the blockbuster merger of Kraft Foods and Heinz with Warren Buffett."

This is pretty interesting. At one point, 3G and Jorge Paulo Lemann were being called amazing investors and business operators. But like an awful lot of highly touted finance people, after a while the magic stopped working.

Makes Warren and Charlie's track record look even more amazing.

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