This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Chocolate Wars: A Win-Win for Buffet?

Stocks in this article: BRK.B BNI GS KFT CBY NSRGF

OMAHA, Neb. ( TheStreet) -- Warren Buffett gets so much press for being the world's greatest investor, in some ways it was nice to see him taken down a notch or two when some of his derivatives investments tanked in the market meltdown, and some questions were raised as to his chink-less armor.

Buffett and Berkshire Hathaway (BKR.B) quickly recovered their footing, though, buying up Burlington Northern (BNI) and seeing his investment in Goldman Sachs (GS), which was at first criticized, reach a level where Berkshire Hathaway's smarts can't be doubted.

Still, could it be that the ongoing candyland saga involving the bid by Kraft (KFT) to buy Cadbury (CBY) might be the ultimate can't-lose bet for Buffett, the investment equivalent of a full-proof gain no matter which way the deal goes?

It has been bandied about in the press that long-time Buffett lawyer Byron Trott has been busy meddling in the Cadbury Affair. And why not? Berkshire owns a huge stake in Kraft, and over the course of 2009, has built up a significant stake in Nestle (NSRGF). Buffet publicly warned Kraft to not overpay for Cadbury.

On Friday afternoon, the Wall Street Journal reported that Nestle might be getting involved in the bidding process through the buying of some chocolate brands from Hershey, a transaction that might allow Hershey to make a rival bid for Cadbury. Previously there had been rumors that Nestle might join a combined bid for Kraft.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.30 +50.09 0.28%
S&P 500 2,092.42 +10.54 0.51%
NASDAQ 4,814.3070 +40.8350 0.86%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs