Warren Buffett’s 10 Longest-Held Stocks

8. The Kraft Heinz Company (NASDAQ:KHC)

Warren Buffett’s First Major Purchase: 2015 

Berkshire Hathaway’s stake in Q3 2024: $11.43 billion

The Kraft Heinz Company (NASDAQ:KHC), a global food and beverage leader formed by the 2015 merger of Kraft Foods and Heinz, produces a wide range of products including condiments, dairy, meat, beverages, and other grocery items.

On October 25, Stifel analysts downgraded The Kraft Heinz Company (NASDAQ:KHC) from Buy to Hold, pointing to sluggish volume recovery and increased reinvestment needs. Stifel also voiced caution about the overall food sector, keeping a Neutral weighting despite food stocks trading at a significant 30% discount to the S&P 500, putting the sector in the 6th relative percentile.

Additionally, in its Q3 2024 earnings report, The Kraft Heinz Company (NASDAQ:KHC) revealed a larger-than-expected quarterly revenue decline, with net sales down 2.8% to $6.38 billion. The company also revised its 2024 earnings per share outlook to the lower end of its prior $3.01–$3.07 range. A Deutsche Bank report indicates that The Kraft Heinz Company (NASDAQ:KHC) may need to make deeper capability improvements to achieve its long-term financial goals, underscoring the challenges and operational complexities the company faces on its growth path.

The Kraft Heinz Company (NASDAQ:KHC) has also strategically sold off its underperforming brands to raise capital, acquired brands with stronger growth potential, and strengthened its traditional brands through product innovation and marketing efforts. This approach also helped the company navigate inflationary pressures in 2022 and 2023 by gradually increasing its prices.