This Looks Like the Perfect Stock for Warren Buffett and Greg Abel to Buy Right Now

1 hour ago 2

Reuben Gregg Brewer, The Motley Fool

Sun, July 12, 2026 astatine 2:35 PM CDT 4 min read

Greg Abel took implicit the CEO occupation astatine Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) from Warren Buffett astatine the commencement of 2026. He's already proven to beryllium a much proactive manager erstwhile it comes to the stocks Berkshire Hathaway owns and businesses it buys. One absorbing determination was his behind-the-scenes propulsion to halt Kraft Heinz (NASDAQ: KHC) from splitting up its business. Despite the troubles Kraft Heinz has faced, Abel should inactive see buying into McCormick (NYSE: MKC) and its planned acquisition.

One mistake is not a crushed to debar each user staples mergers

The Kraft Heinz merger was backed by Buffett, and it didn't enactment retired well. But determination was a occupation with the woody from time one. Both Kraft and Heinz were bloated companies struggling to get backmost connected track. The full intent of the merger was to simply chopped costs, which is good to a point. However, the user staples abstraction is driven by innovation and advertising. Kraft Heinz focused truthful overmuch connected cost-cutting that it stopped being an innovative company. And advertizing wasn't spared successful the cost-cutting effort, either.

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A keyboard with a bargain cardinal connected it and digit astir to property that key.

Despite the less-than-desirable result with Kraft Heinz, Abel is pushing the company's caller enactment squad to close the vessel earlier splitting the concern successful 2 again. Two atrocious companies are nary amended than 1 atrocious company. Despite Kraft Heinz's troubles, Abel should see buying McCormick, arsenic it is looking to get Unilever's (NYSE: UL) nutrient business.

A large woody and a unsocial accidental

This is simply a precise ample transaction for McCormick, arsenic it volition astir treble the company's size. Investors are disquieted astir the transaction, noting that McCormick's banal fell connected the news. It roseate arsenic investors digested the story, but past tumbled astir 15% arsenic the scope of the woody came into focus. While the shares person recovered aft a coagulated quarterly net update, the banal has fundamentally gone obscurity since the acquisition announcement.

So there's inactive clip for Abel to bargain McCormick portion it offers a historically precocious 3.7% output and a historically debased price-to-earnings ratio of astir 9x. The large accidental for Abel is helping to concern the transaction, which could let him to bargain preferred stock, a stock benignant that Buffett utilized to large effect with Bank of America (NYSE: BAC) erstwhile the elephantine slope needed cash.

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