Warren Buffett says we overpay for Kraft Heinz

NEW YORK-the megainvestidor Warren Buffett said that Berkshire Hathaway and 3 g Capital paid too much in 2015, when helped Heinz to buy Kraft to form Kraft Heinz Co. "the interesting thing about the Kraft Heinz is still an excellent deal" Buffett said in an interview with American TV channel CNBC. However, the deal doesn't make more money because you pay more for it. " He said that Kraft Heinz is "a fabulous business in terms of return on tangible assets", but the Heinz overpaid by Kraft and took on too much debt. "Our debt of $ $31 billion is bigger than designed initially for credit rating agencies, and we need to reduce it. And it decreases very slowly unless you properties for sale, "he said. Buffett also said that Kraft Heinz lost bargaining power next to retail, and used the Kirkland brand, Costco, to demonstrate how retail is changing. While many of the Kraft brands Heinz have existed since the 19 century, Kirkland was released in recent decades, yet overcame the Kraft Heinz in sales last year, he said. "Kraft Heinz has more than 100 years and a lot of propaganda, present in the habits of people and all that, and now the Kirkland, brand, arrives with only 750 outlets and sells 50% more. The investor defended accusations that company would have invested little in their brands. He claims that when he served on the Board of Heinz Kraft (he left the Council in April), "I've seen a lot of innovation". But, he said, it is difficult for new products gain ground and Kraft Heinz made the mistake of thinking that had more bargaining power with retailers than it actually had. Although the shares have plunged in recent days, he says keep pleased to have 27% of Heinz and Kraft to be partner of the brazilian 3 g Capital. "I certainly glad to be partner (the co-founder of 3 g, Jorge Paulo Lemann). He is an amazing human being and very smart in business, "said Buffett, indicating that you do not want to sell your share in the company. "It's not our style." On Saturday, it was revealed that Kraft Heinz $ losses generated $2.7 billion to Berkshire in 2018.