Warren Buffet and the ultimate liberal pay off

[Value Buy]

Berkshire Hathaway and 3 G announced today they are purchasing Heinz Corp for $72.50 per share or, 28 billion dollars this morning.
And the big winner in this transaction.?
Teresa and John Kerry.
She owns 12% of Heinz and wins the pay off of about a billion and a half dollars.

Birds of a feather......

Heinz is also a big winner on the foodstamp landscape as poor people buy Heinz Ketchup on the government dole, so you the taxpayer are paying for this buy off of a politician (granted, a former Senator) through future foodstamp purchases of Heinz products.
Wanna bet there is a huge increase in retail price of Ketchup to pay for this deal that you are bankrolling?
Warren Buffet also stated his corporation is sitting on close to 30 billion dollars overseas that he cannot bring stateside due to frderal government double taxation of profits made overseas. 
And here I thought he was all about fair taxation and paying your fair share of taxes, and yet he is still dodging the taxman.
Please do not give me the argument he is protecting stockholders. He is the majority stockholder and he can do what he wants, and there is no "law" stating you cannot bring money back from overseas-you just have to pay your "fair share of taxes" to do it.

[Deleted]

I don't understand calling it a payoff. I would think Heinz is a good company to buy. I'm pretty sure the buyers are going to make money off of this deal.

[thyme4change]

I wonder - the market is saturated.  It isn't like they are going to find new uses, or new users for Ketchup.  The generics are catching them faster then they can market against them, and the fact that ketchup is becoming a commodity is driving the price down further and further.  I don't see where the huge growth is.  Unless they discover a new condiment that they can convince everyone to put on everything, Heinz is a cash cow, that you can milk for a while, but it will diminish over time.

[Savoir Faire-Demogague in NJ]

I think you are pushing the envelope a bit with Berkshire purchasing Heinz.....

In any event.............


Warren Buffet also stated his corporation is sitting on close to 30 billion dollars overseas that he cannot bring stateside due to frderal government double taxation of profits made overseas. 
And here I thought he was all about fair taxation and paying your fair share of taxes, and yet he is still dodging the taxman.
Please do not give me the argument he is protecting stockholders. He is the majority stockholder and he can do what he wants, and there is no "law" stating you cannot bring money back from overseas-you just have to pay your "fair share of taxes" to do it.

I'd love to see a news article or link to some story documenting this. I do not doubt that Buffett would do this but lets see some sort of source. I mean, really, Buffett is the master at avoiding and using the tax code to avoid "his fair share"....

[thyme4change]

I mean, really, Buffett is the master at avoiding and using the tax code to avoid "his fair share"....

And then he does publically gripe about how little he was forced to pay.  [/span]

[Savoir Faire-Demogague in NJ]

Here is a Forbes article dated August 17, 2011 on Buffett's use of the tax code.....

www.forbes.com/sites/greatspeculations/2011/08/17/how-buffett-saves-billions-on-his-tax-return/

How Buffett Saves Billions On His Tax Return

Warren Buffett brought his 2010 income tax return to his television interview with Charlie Rose this week. In my Nov. 24 blog “Dear Mr. Buffett: Put Up Or Shut Up On Taxes,” I asked Buffett to show his tax returns to the media, so the public could assess if Buffett significantly uses tax loopholes. We learned during the interview that he does.

In the YouTube video posted below – at the 31:21 time spot – Buffett casually mentioned to Rose that he uses the maximum 30% charitable contribution deduction each year – for appreciated property – and he has a $10 billion carryover of charitable contributions for subsequent use too.  Just as I suspected in my prior blogs about Buffett using charitable tax deduction schemes.

Buffett told Rose his 2010 adjusted gross income was $62 million. He implied that most income came from long-term capital gains and qualifying dividends currently taxed up to 15%.  Only a small portion of his gross income – a few million dollars for Buffett – is ordinary income, like wages and interest income, taxed at higher ordinary income tax rates currently up to 35%.

Buffett’s 30% charity tax deduction offsets his entire ordinary income, and next it offsets his lower long-term capital gains income.  Hence, he pays approximately 15% long term capital gains tax rates only, and – as he likes to say – it’s a lower tax rate than others in his office pay.

Without that charitable tax deduction of appreciated shares wiping out his ordinary income, Buffett would pay the same tax rate as others on his wages and other ordinary income too. In that case, long-term capital gains preferential rates would only be the icing on the cake and not the whole cake.

Click link for full article and YouTube vid.

[Deleted]

Feb 14, 2013 9:37:41 GMT -5 thyme4change said:

I wonder - the market is saturated.  It isn't like they are going to find new uses, or new users for Ketchup.  The generics are catching them faster then they can market against them, and the fact that ketchup is becoming a commodity is driving the price down further and further.  I don't see where the huge growth is.  Unless they discover a new condiment that they can convince everyone to put on everything, Heinz is a cash cow, that you can milk for a while, but it will diminish over time.

The other player in this transaction is 3G.  They are a Brazilian/European conglomerate.  I would suspect the strategy here is to take Heinz products global; especially South America. 
And as for bashing the Kerrys about this as some sort of liberal conspiracy........ .  

[thyme4change]

I thought Heinz was already distributed in South America - no?  

[Deleted]

It is but lots of room for growth....

www.heinz.com/data/pdf/Heinz_Around_the_World_MapFINAL.pdf

[Value Buy]

Feb 14, 2013 9:55:36 GMT -5 Savoir Faire-Demogague in NJ said:

I think you are pushing the envelope a bit with Berkshire purchasing Heinz.....

In any event.............


Warren Buffet also stated his corporation is sitting on close to 30 billion dollars overseas that he cannot bring stateside due to frderal government double taxation of profits made overseas. 
And here I thought he was all about fair taxation and paying your fair share of taxes, and yet he is still dodging the taxman.
Please do not give me the argument he is protecting stockholders. He is the majority stockholder and he can do what he wants, and there is no "law" stating you cannot bring money back from overseas-you just have to pay your "fair share of taxes" to do it.

I'd love to see a news article or link to some story documenting this. I do not doubt that Buffett would do this but lets see some sort of source. I mean, really, Buffett is the master at avoiding and using the tax code to avoid "his fair share"....

SF,he was on CNBC this morning discussing all of this.

[Savoir Faire-Demogague in NJ]

SF,he was on CNBC this morning discussing all of this.

Okay, thanks I'll go to their website, they likely would have the video... I just have to hear hime say this...

[Deleted]

Because ketchup is now a partisan issue?

[thyme4change]

I would suspect the strategy here is to take Heinz products global; especially South America.

Are we back to the theory that they are going to add more cumin flavors to the ketchup? 

[cme1201]

Feb 14, 2013 11:39:29 GMT -5 deminmaine said:

Feb 14, 2013 11:22:09 GMT -5 @craftysarah said:

Because ketchup is now a partisan issue?

As far as I know not since Raygun tried to call it a vegetable.

Another one of those Truths that are not truths but will continue to be made as truth.

The ketchup is a vegetable controversy refers to proposed United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) regulations, early in the presidency of Ronald Reagan, that intended to provide more flexibility in meal planning to local school lunch administrators coping with National School Lunch Plan subsidy cuts enacted by the Omnibus Regulation Acts of 1980 and 1981.^[1][2] The regulations allowed administrators the opportunity to credit items not explicitly listed that met nutritional requirements. While ketchup was not mentioned in the original regulations, pickle relish was used as an example of an item that could count as a vegetable.^[3]

en.wikipedia.org/wiki/Ketchup_as_a_vegetable

[thyme4change]

cme - there is no fun in the truth. 

[sesfw]

As long as Heinz keeps making 'no salt' Ketchup I'll keep buying it.  I don't care who the parent company is.

Yes, I own 100 shares of Heinz stock and now deciding what to do with the cash in my portfolio.  I'm small potatoes compared to the big guys but I also don't have all the ulcers and headaches.

[ihearyou2]

Dems call it ketchup and Republicans call it catsup, once you understand that it all makes sense.

[swamp]

Heinz is also a big winner on the foodstamp landscape as poor people buy Heinz Ketchup on the government dole, so you the taxpayer are paying for this buy off of a politician (granted, a former Senator) through future foodstamp purchases of Heinz products.

I bought some Heinz ketchup the other day and I didn't use food stamps.  I'm pretty sure it's the same all over the country.

And shall we start digging for other politicians that have investments in the food industry?  I'm pretty sure there are a whole bunch of them on both sides of the aisle.

[Deleted]

Feb 14, 2013 12:54:34 GMT -5 ihearyou2 said:

Dems call it ketchup and Republicans call it catsup, once you understand that it all makes sense.

Three tomatoes are walkin' down the street.
Papa Tomato, Mama Tomato and Baby Tomato.
Baby Tomato starts lagging behind, and Papa Tomato gets really angry.
Goes back and squishes him and says: "Ketchup."

[usaone]

You guys are crazy. Buffett AND 3G bought Heinz to make money.

[weltschmerz]

Yuck. Ketchup.

[Deleted]

 Gee... imagine what percentage of Food Assistance benefits is spent buying Heinz ketchup... 
 I never imagined ketchup to be a significant component of the average household food budget. How many bottles does an average family purchase per week? Per month? per year?
 Get serious.

[swamp]

apparently welfare recipients are scarfing down ketchup sandwiches when they run out of crab legs and pepsi.

[weltschmerz]

Feb 14, 2013 13:49:56 GMT -5 swamp said:

apparently welfare recipients are scarfing down ketchup sandwiches when they run out of crab legs and pepsi.

Well now they'll have to stuff their Coach bags with the little freebie packets from fast food joints.

[swamp]

Feb 14, 2013 14:07:17 GMT -5 weltschmerz said:

Feb 14, 2013 13:49:56 GMT -5 swamp said:

apparently welfare recipients are scarfing down ketchup sandwiches when they run out of crab legs and pepsi.

Well now they'll have to stuff their Coach bags with the little freebie packets from fast food joints.

that's fine, they can use the food stamps to buy fast food.

[Robert not Bobby]

I’ve read that Kerry and his wife keep their finances relatively separate. The Heinz fortune will be passed on to the Heinz children not to Kerry’s daughters. Kerry is no slouch in the money department either,but obviously has nothing like his wife’s worth.

This is a business deal, not some sort of payoff…and a payoff for what, future considerations? After all, now that Kerry is Secretary of State maybe he will start lobbying foreign governments to introduce the use of more ketchup in the local palates. LOL

Berkshire Hathaway has taken a 50 percent stake in Heinz (which makes many products other than ketchup) because they think it has staying power, is a cash cow and can be expanded into non-traditional markets.This is well in keeping with Buffet’s other substantial holdings in food, beverage and consumer products industries: Walmart, Coca Cola, Kraft Foods, Johnson and Johnson (Tylenol, Rolaids, Listerine, Visine, etc), Proctor and Gamble, (Bounty paper towels, Charmin, Crest, Downy, Duracell, Fabreze, Gillette, Head and Shoulders, Pampers, Tide, Vicks) etc.

Heinz just can’t make any more green ketchup blunders.

[Savoir Faire-Demogague in NJ]

I’ve read that Kerry and his wife keep their finances relatively separate. The Heinz fortune will be passed on to the Heinz children not to Kerry’s daughters. Kerry is no slouch in the money department either,but obviously has nothing like his wife’s worth.


That CNBC Video of Buffett's interview this morning, one of the hosts indicated Theresa Heinz's tax rate is 12%.
Here is the link to the CNBC interview this mroning.

</SPAN>www.cnbc.com/id/100442835</FONT></FONT></SPAN></A></P>

[workpublic]

America consumes approximately 214,041 gallons of ketchup per day (or 78,125,000 gallons per year)

how much of that is purchased by the govt(not just with welfare dollars)?

when the govt or it's contractors buy ketchup is it from the lowest bidder or is it from heintz?

[Value Buy]

Feb 14, 2013 14:07:56 GMT -5 swamp said:

Feb 14, 2013 14:07:17 GMT -5 weltschmerz said:

Well now they'll have to stuff their Coach bags with the little freebie packets from fast food joints.

that's fine, they can use the food stamps to buy fast food.

Lest, we forget the free cell phones at paying consumers (taxpayers in welfare society parlance) so they can keep in contact with their crack pusher and pimp.
Another liberal pay off for their vote in November.

[swamp]

I'm pretty sure the cell phones for the poor people,was a program started under GWB.