This Day On The Street
Continue to site
ADVERTISEMENT
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

Chocolate Wars: A Win-Win for Buffet?

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 - Get Report), 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
NSRGF $78.12 0.12%
BRK.B $141.09 -0.70%
GS $196.52 -0.74%
AAPL $132.65 1.82%
FB $81.91 0.47%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs