This Ridiculously Cheap Warren Buffett Stock Could Make You Richer

The market is treating KHC like a broken merger, but the more important setup is a forced simplification of the story. Pausing the split removes a near-term overhang that would have introduced two subscale equity stories, duplicated overhead, and a likely dispute over who deserves the better multiple; in the interim, one ticker with a stable cash engine is easier for capital allocators to own than two uncertain new entities. The second-order winner is any competitor with cleaner brand architecture and better pricing power, because KHC’s R&D/marketing ramp is effectively a defense campaign for shelf space rather than an offensive growth push.

The real catalyst path is not a quarter-to-quarter sales beat; it is evidence that volume decline bottoms before the market re-prices the equity. If management can show even low-single-digit organic stabilization over the next 2-4 quarters, the stock can rerate from “liquidate me” to “sum-of-parts optionality,” especially if leverage remains controlled and buybacks resume as a capital-allocation lever. The main tail risk is that the marketing spend merely buys time while private-label and fresher categories keep taking share, in which case the pause becomes a delay tactic and not a turnaround.

BRK.B matters less as a fundamental holder and more as a sentiment anchor. A gradual or partial reduction would create a technical air pocket, but the opposite is also true: as long as Berkshire does not rush for the exit, the market has to price the possibility that the asset is being vetted rather than abandoned. That makes the asymmetry attractive for patient capital, but only if sized like a governance/turnaround special situation, not a staple core holding.