Buffett disclosed a a large stake in Kraft by buying just under 10% of the company. Off course Buffett has established a smaller stake last year in the cheese maker and increased it in the last quarter.
I have reviewed Kraft, see here, before and reached to a conclusion that although it has a lot of brand names and good cash flows I did not feel it was an appealing investment. The brand names does not translate to any competitive advantages nor does Kraft can sustain market share in the face of accelerating food prices.
I always wondered what is the value and how Buffett analyzed this one but to no avail. I guess that is why he is the second richest man in the world and I am not. Does this mean I will change my mind on the kraft? No. I will stay away from it, I do not like the food business, the aging brands, the high debt level, if you strip intangibles, and the high valuation. But I will be curious to his reasoning.