These 3 Stocks Might Be Getting a Little Too Expensive
A company's quality is more important than the valuation of its stock. After all, a junk company at a great price is still a junk company -- not exactly the kind that investors should hitch their financial wagons to for the long haul. However, the price investors pay for a stock is still important.
Consider that Warren Buffett is one of the greatest investors ever and has an enviable track record of success. But in 2019, Buffett admitted to CNBC that Heinz, under his direction, overpaid when acquiring Kraft in 2015. Since the acquisition was announced in March 2015, Kraft Heinz stock is down over 50% even though the S&P 500 index has more than doubled.
Buffett owns a lot of Kraft Heinz stock, which consequently impacts the long-term growth rate of his investment portfolio. Buffett would still say that Kraft Heinz is a great company. But in overpaying for Kraft, investment returns were set back.
Source Fool.com
