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Sell Kraft Heinz?

I'm currently down 27% (after dividends) or 29% (purely by price) on Kraft Heinz, but I have an investment horizon that ideally could span several decades. In view of the high dividend, the relatively low P/E ratio and a potential turnaround, it wouldn't be a shame to part with the stock at a loss if it's not actually a piece of junk and will pay me dividends every year that would theoretically put any call money account in the shade, even if the stock market is poor.

I am aware of the irrational component of my considerations (realizing losses is painful, ergo stupid), but at the same time I have a rational component, namely: if I were not already invested, would I currently be considering buying Kraft Heinz, as it may soon be going up again!

Do you think the downturn is already over or will Kraft Heinz sink ever deeper towards the bottom? If the downturn is over, how realistic is growth, at least at industry level, in the next 5-10 years?

$KHC (+0,09%)

4 Comentários

MoneyIncinerator@DoppelSchlechtMinus

Whether it went up or down in the past is practically irrelevant for the future development.
Instead, think about whether you have better things to do with the money, or whether KHC is already the ultimate best investment you can imagine for this part of your portfolio.

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Jonas@jjjjjonas

@DoppelSchlechtMinus And that is precisely my question. If I were to consider buying the share now, I would not say "no" without hesitation, as I can already see that it can develop upwards. I like to hold defensive consumer staples stocks in my portfolio, which have less price growth, but pay solid dividends and get through crises safely. From this point of view, I find Kraft Heinz exciting again at the current price, but I am unsure whether the upside potential is more speculation or really the consensus of observers.

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Jörg@joergdischhaeuser

I also took them in because of the dividend. But only very little via a savings plan so far. I'm sitting it out

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Soprano@Soprano

Yes, the core problem is that it's just a bad share. It already was when you bought it. It was just cheap and is even cheaper now. So it would be a rational step to buy more in order to lower the entry price. You still seem to be convinced. I don't think it will go much lower now, unless something bad happens. But I personally don't buy companies just because they're cheap

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