- Unilever NV delivers modest earnings and dividend yields typical of a consumer staple.
- But the company is a well-managed producer of recognizable global consumer brands.
- The Kraft Heinz failed merger bid with Unilever last February pales in comparison to Amazon’s pending acquisition of Whole Foods Market.
- As apparently did Kraft Heinz, we regard Unilever as a fundamentally sound company whose stock trades at a reasonable margin of safety due to a low-risk profile.
(Subscribers to the Main Street Value Investor Marketplace received the first look at this research).
Unilever NV (NYSE:UN) is up over 35% from its January 2017 low before the Kraft Heinz Company (NASDAQ:KHC) bid for the European-based consumer packaged goods producer and Unilever’s subsequent rejection became public.
Despite the failed takeover, the event was another reminder that when Warren Buffett and Charlie Munger get involved, value is often unlocked. Buffett's and Munger’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) owns over 25% of KHC shares outstanding.
In our flagship research article on UN, we suggest that Unilever and its diversified product mix of food, personal, and household goods is a compelling choice as a core consumer staples holding of a long-view investor’s portfolio.