Greg Abel-Led Berkshire Hathaway Owns 3 Consumer Stocks. Here's the One I'd Buy First.
2026-10-04 07:05
•James Brumley •The Motley Fool
•••••• ••••• Axe Cap view
Why Kroger Stands Out Among Berkshire’s Consumer Picks
Kroger’s pullback and dividend strength make it the most compelling buy among Berkshire Hathaway’s consumer stocks today.
Berkshire Hathaway’s consumer holdings reveal a clear pattern under Greg Abel’s watch: quality combined with sensible valuation matters. Coca-Cola remains a blue-chip titan but trades at a high premium after a recent rally, squeezing potential returns for new investors. Kraft Heinz, meanwhile, is stuck in turnaround mode, dragging its appeal down. Kroger is the sleeper pick here. The stock is 20% off its peak, offering a cheaper entry without sacrificing dividend growth — a rare find nowadays. Its new CEO shows tactical resolve with a price-cutting strategy that’s boosting competitiveness. South African investors should watch USD/ZAR closely—any rand strength could amplify gains from these dollar-denominated moves. Still, Kroger’s success hinges on sustained consumer spending and supply chain stability, so a US slowdown or inflation surge could change the story. this is just our opinion and not financial advice
Buy Kroger for income and value; trim or avoid Coke due to rich valuation. Watch USD/ZAR trends to time entry.
- KR
- USD/ZAR
- US consumer slowdown
- inflation impacting input costs
7/10
Among Berkshire Hathaway's three main consumer staples holdings, Kroger emerges as the most attractive buy opportunity. While Coca-Cola remains the best quality company but has become expensive, and Kraft Heinz is distracted by restructuring plans, Kroger's recent pullback from March highs has created an attractive entry point. New CEO Greg Foran's price-cutting strategy is working to improve competitiveness, and the company maintains strong dividend growth with 20 consecutive years of increases and aggressive share buybacks.
Our take is based on reporting first published by The Motley Fool.