Core Viewpoint - The company overpaid for Kraft, impacting its long-term potential despite operational success [2][8] Financial Performance - Kraft Heinz generates approximately $6 billion in pretax profits on $7 billion of tangible assets, indicating a strong business model [2][8] - The profitability of Kraft Heinz has improved compared to previous operations [3] Brand Dynamics - Amazon and Costco have established strong private-label brands, with Costco's Kirkland brand generating $39 billion, surpassing Kraft Heinz's total brand value of $26 billion [4][5] - The power dynamics between retailers and brands have shifted, with retailers like Amazon, Walmart, and Costco gaining more influence [7][8] Investment Philosophy - The company emphasizes the importance of purchasing good businesses at reasonable prices, moving away from the strategy of acquiring declining businesses at bargain prices [9]