Warren Buffet buys Heinz $28 Billion.

[ZenOps]

http://www.streetinsider.com/Hot+List/H.J.+Heinz+(HNZ)+Acquired+by+Buffetts+Berkshire+Hathaway+for+$28B/8095326.html

Knew it was too tempting. $3 per litre Ketchup, and people are still buying it by the truckload.

I can imagine that Buffet will take it up to $5 per litre just to see what happens to demand.

I fully expect Buffet to spend 1/100th of his bounty to buy up all the remaining US nickels (and possibly pennies) sometime in the next two years, If nickel stays under $25/pound.

[sputnik]

You logic makes little sense if the rise in Ketchup prices is directly attributed to the cost in tomatoes.

[CapnCrunch]

Originally posted by sputnik
You logic makes little sense if the rise in Ketchup prices is directly attributed to the cost in tomatoes.

You just posted in a Zenops thread and speak of logic and making sense?

Shame on you.

[ZenOps]

Originally posted by sputnik
You logic makes little sense if the rise in Ketchup prices is directly attributed to the cost in tomatoes.

Cost of tomatoes has little to do with Ketchup, its there but a small factor.

Its the availability and monopoly of Ketchup that is the price determiner. Marijuana technically costs about the same/slightly more than corn to grow (less water even), and yet it does not cost anywhere near the same.

Uncalled for but I'll say it anyways: Cost of Beef has little to do with the price of an all beef lasagna in Europe

What is 4.54 grams to 8 grams of nickel in a flat disc worth? Somewhere between 5 cents and $2 - based on availability.

[sputnik]

Originally posted by ZenOps
Its the availability and monopoly of Ketchup that is the price determiner. Marijuana technically costs about the same/slightly more than corn to grow (less water even), and yet it does not cost anywhere near the same.

Buffett is investing in Heinz for the same reason he invests in any other corporation.

Heinz is a household name and creates a product that people will continue to buy/use regardless of the condition of the global economy. This is why he owns large portions of Coca-Cola, Johnson and Johnson, DirectTV, Kraft, Walmart, Proctor and Gamble and AMEX.

You can have your theories about ketchup commodity prices just like you had your theories about $10 loaves of bread a few years ago.

I tend to believe that sometimes the simplest explanation is the correct one.

[ZenOps]

A loaf of bread is already past $5, companies like Hostess Wonder Bread is losing about $10 million per month trying to compete at around $3 a loaf.

To make a tiny profit, Hostess would have to sell bread above the $5 for sure. To actually start to pay off their debts owing, it would be much closer to $10.

Eventually pricing does catch up to reality. Warren Buffet does both, he looks for commodities that are undervalued and have high potential for growth and a built in price floor.

Hence... I'm pretty sure hes eyeballing the nickels.

[sputnik]

Originally posted by ZenOps
A loaf of bread is already past $5, companies like Hostess Wonder Bread is losing about $10 million per month trying to compete at around $3 a loaf.

I get my bread at $1.25 per 454g loaf.

City Rye Bread made locally in Winnipeg.

[msommers]

Wow I've never heard of bread that cheap, even the shittest stuff at the grocery store and certainly not at Cobb's or the Farmer's Market.

[clem24]

Originally posted by sputnik


I get my bread at $1.25 per 454g loaf.

City Rye Bread made locally in Winnipeg.

What's with Winnipeg and rye? The coffee shop downstairs makes their toast with Winnipeg rye and it's fucking awesome... Even paid them $12 to buy a loaf off them one year after they ended up ordering too much.

[Manhattan]

Buffet needs to open a chain of buffet restaurants and call it Buffet Buffet. :thumbsup:

[GS430]

If this bastard ruins ketchup in any way, I will find him..

[sputnik]

Originally posted by clem24


What's with Winnipeg and rye? The coffee shop downstairs makes their toast with Winnipeg rye and it's fucking awesome... Even paid them $12 to buy a loaf off them one year after they ended up ordering too much.

No idea. I agree though, it is awesome. When I was living in Calgary my family would bring 5-6 loaves of bread and a few dozen bagels from Winnipeg whenever they would visit.

The funny thing is that there are 4 bakeries that are all over 50 years old that claim that they have the best Winnipeg rye bread. It can also turn into a bit of a religious debate here as well.

http://www.citybread.com
http://kubbread.com
http://www.naturalbakery.ca
http://www.gunnsbakery.com

I like the City Bread the best. It's also super cheap. My wife was shocked the first time we went to the bakery together. The same quality of bread would be $5-6/loaf in Calgary and you would have to go to a place like Cobb's to get it.

[sputnik]

Originally posted by GS430
If this bastard ruins ketchup in any way, I will find him..

You really think Buffett is going to change Heinz? The reason he bought them is because he knows that they will continue to make money without having to change one bit.

[GS430]

Originally posted by sputnik


You really think Buffett is going to change Heinz? The reason he bought them is because he knows that they will continue to make money without having to change one bit.

Not sure why you took my post seriously at all lol.

This was my favorite quote in the article..


"I've sampled it many times."—Warren Buffett on Heinz

[Xtrema]

Originally posted by Manhattan
Buffet needs to open a chain of buffet restaurants and call it Buffet Buffet. :thumbsup:

2 t's my friend, 2 t's.


Buffett never look at short term gain so he won't mess with it. Although he may send more inspectors to catch imposters.

[Manhattan]

We'll cut a letter off the name for the sake of branding.

[Sugarphreak]

...

[msommers]

Originally posted by Sugarphreak
Anybody find it funny that Zenops was going on about Ketchup prices quite a while ago and then Buffett suddenly steps in and buys the one company that has a monopoly in it... a weird move by an insanely talented investor, yet predicted by our resident crazy guy, spooky!

Oh. My. God....Get outta the way, I need all the nickel!

[Xtrema]

Originally posted by Sugarphreak
Anybody find it funny that Zenops was going on about Ketchup prices quite a while ago and then Buffett suddenly steps in and buys the one company that has a monopoly in it... a weird move by an insanely talented investor, yet predicted by our resident crazy guy, spooky!

http://i0.kym-cdn.com/photos/images/original/000/199/693/disgusted-mother-of-god.png

[CanmoreOrLess]

Any ideas on what ZenOps does for a day job, besides rolling coins?

[trieuth]

Ahh, how did I not hear about this sooner? Gotta ketchup on the news... in Heinzsight, I guess we should have seen this coming..

[Cos]

.

[sputnik]

Originally posted by Cos


wait wait wait.... what if.... no.... it can't be true...... could Zenops BE Buffett?

Old men be liking lose change. Maybe hence his obsession with Nickles.

Buffett and ZenOps are complete opposites when it comes to investing.

ZenOps would be the anti-Buffett if anything.

http://images4.wikia.nocookie.net/__cb20100512112439/lostpedia/images/5/5b/6x15_MenInBlackAndWhite.jpg

[themack89]

Originally posted by sputnik


Buffett and ZenOps are complete opposites when it comes to investing.

ZenOps would be the anti-Buffett if anything.

http://images4.wikia.nocookie.net/__cb20100512112439/lostpedia/images/5/5b/6x15_MenInBlackAndWhite.jpg

I think Soros deserves that title.

[Cos]

.

[ZenOps]

Buffett is a realist, I admire his common sense.

He once bought 129,710,000 ounces of silver. I'm pretty sure he will eventually get around to buying 2 or 3 billion ounces of nickels (that would be more than the entire nickel nickel coinage of Canada in sixty years) after he has amassed enough in ketchup sales.

[Go4Long]

I'm also kinda curious what ZenOps does for a living...lol.

[msommers]

Originally posted by Go4Long
I'm also kinda curious what ZenOps does for a living...lol.

Probably nickles and dimes people.

[powerslave]

Originally posted by Go4Long
I'm also kinda curious what ZenOps does for a living...lol.

My guess is nothing.
All the conspiracy theory stuff, random theorycrafting, keeping up with the prices of metal, gas, stocks etc. That has got to keep one pretty busy on its own, let alone with a job.

[ZenOps]

Originally posted by msommers
Probably nickles and dimes people.

Just nickels, and just from the banks because they have been Alloy Recovery Programme culling them for quite a few years now. Its a race against the machine now.

"During the 13 weeks ended June 30, 2012, the Mint recovered and sold 272.0 metric tonnes of nickel and 57.0 metric tonnes of cupronickel compared to 162.5 metric tonnes of nickel and 57.0 metric tonnes of cupronickel in the same period in 2011."

So at that rate, I'm guessing about 4 years from now you will not find a real nickel in a roll of nickels from a Canadian bank. The number of non-nickel dollars and toonies should be about 50/50 by then as well.

You could tell people to invest in peanut butter and ketchup, but they will never believe you until a billionaire does it. Same with nickels.

I do wonder at what point people will hit a breaking point on a two kilo jar of peanut butter? $20?

[spikerS]

so apparently this deal was halted by the SEC or something or other because of suspected insider trading or something like that.

anyone know what happened or what is going on?