By Dr. David Kass
According to Warren Buffett on CNBC, the Kraft Heinz merger will result in Berkshire Hathaway owning 320 million shares of the combined company when it is expected to close during the second half of 2015. At Kraft’s (KRFT) closing price yesterday of $83 per share, after a $16.50 cash dividend to current KRFT shareholders, the resulting price of $66.50 implies a valuation of about $21 billion for Berkshire’s holding in this company. This will represent Berkshire’s second largest common stock investment, trailing only Wells Fargo ($26 billion). Since Berkshire will own 26% of Kraft Heinz, the new company is being valued at about $80 billion.
ARK Invest is known for targeting high-growth technology companies, with one of its most recent additions being DraftKings. In an interview with Maverick's Lee Ainslie at the Robinhood Investors Conference this week, Cathie Wood of ARK Invest discussed the firm's process and updated its views on some positions, including Tesla. Q1 2021 hedge fund letters, Read More