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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (30052)	2/16/2008 2:40:50 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78774

Kraft discussion. Mr. Buffett has had a long-history with Kraft. Going from my poor memory, it seems to me he had a large KFT position and got out when MO bought the company. I seem to remember he bought his Kraft shares at a p/e of around 10. This is in the day when interest rates were much higher (maybe 8-10%) than now. So for Buffett followers, no surprise that he's been interested and has reentered with a substantial position. I like to follow Mr. Buffett in his picks. I just don't get KFT though as a buy now with its current p/e (over 15), its stodgy growth prospects, and the grocery chain generics competition. Maybe it's the possibility of growth through acquisitions or the safety of having great food brands that Americans always will eat - Kraft cheeses, Oreos, etc. Stock's too rich for me. Or I'm not understanding the company/prospects correctly. Anyway, I pass. Maybe at current price, MO is the better bet. I hold a few shares still, may enter for more.