It's anybody's guess which company -- Kraft, Cadbury, Hershey, Nestle -- will win the Chocolate War. But as far as Warren Buffett and Berkshire Hathaway are concerned, it might be a no-lose deal -- and Buffett's shrewdest move yet.
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.