Warren Buffett buys $500M stake in grocery chain Kroger

Warren Buffett buys $500M stake in grocery chain Kroger

[ad_1]

rssfeeds.usatoday.com

Warren Buffett’s Berkshire Hathaway has acquired a 2.3% stake in Cincinnati-based Kroger, government disclosures say.

Word of the legendary investor’s $500 million purchase in the nation’s second-largest grocer sent the company’s stock soaring in after-market trading last Friday.

With a net worth of more than $80 billion, Buffett is listed as the world’s third-wealthiest man behind Amazon CEO Jeff Bezos and Microsoft founder Bill Gates, according to Forbes. Buffett’s conservative buy-and-hold investing style is credited for popularizing value investing.

Buffett’s investing style, unlike activist hedge funds that have targeted Cincinnati peers such as Procter & Gamble and Macy’s, will likely be interpreted as a vote of confidence in Kroger management’s strategy and stock outlook.

Berkshire Hathaway’s 18.9 million shares are enough to make it one of Kroger’s 10-largest investors.

Kroger’s stock has taken a hit in recent years after Amazon jumped into the grocery business when it acquired Whole Foods in mid-2017. Since then, the downtown-based retailer has ramped up curbside pickup and home delivery options to woo customers demanding more convenience.

Coronavirus impact:Restaurants struggle amid fears of outbreak

Coming clean:The 3 biggest myths about doing laundry

For the latest on Kroger, P&G, Fifth Third Bank and Cincinnati business news, follow @alexcoolidge on Twitter.



[ad_2]

Source link

Published
Categorized as Business

By Bernice Caldwell

Bernice is one of the finest authors Industry News Today portal has until now. Bernice's linguistic and well-written technique is one of the plus points that have the readers glued to her articles. Bernice currently heads the Healthcare and Services domain as her knowledge on the medical topics is immense. She has just joined the Industry News Today portal 6 Months back but the love for writing can be very well seen. She may be short on experience but it has definitely not stopped her from presenting some of the finest articles. Bernice is currently a very well-known personality on the portal to have shown her skillful writing in such a limited time span.

Leave a comment

Your email address will not be published. Required fields are marked *