Billionaire investor Warren Buffett thinks he “made a mistake” when he “overpaid” for Kraft Heinz. It’s hard to disagree with that assessment, since he made it a week after Kraft Heinz’s stock dropped by nearly 30% in a single trading session. It’s probably better to spot problems before the collapse, though, not after.
One of the biggest stories in investing over the last year has been the collapse of the department store brand Sears. Its chairman, Edward Lampert, was able to rescue Sears in part by buying it out of bankruptcy through his hedge-fund. But this comes after a remarkable destruction in shareholder value: over the past year, Sears has declined nearly 80%.