Newscasts - Heineken, Hershey good bets amid 'new playbook' for stocks
21/04/2025 21:30
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_dx60sbgu&referenceId=tag:reuters.com,2025:newsml_RW812721042025RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Brian Krawez, president and lead portfolio manager of Scharf Investments, explained why shares of Dutch beer maker Heineken, which investors once "gave up on," are now looking like a solid investment. Short Link: https://refini.tv/42VVyJi Video Transcript: Really the playbook that worked over the last decade, sort of momentum, high growth, US tech, like, we're upending all of that. And so now it's a new playbook is really needed. Value is going to do better, we think, non-US assets, companies with exposure outside of the US. If you look at something like a Heineken, which just kind of plods along and, people sort of just gave up on it and it was trading as cheap as 13, 14 times recently. You know, it's very non-US oriented, but pretty much a product that people will keep drinking regardless, and you can get it at a reasonable price, and you're probably going to do okay. More like, closer to home, something like a Hershey, not really as affected by tariffs and ultimately is actually a trade down because it's a very affordable cheap luxury, right? If people get more stressed, they'll trade from more expensive chocolates down to a Hershey. So, it's a very insulated type of product. Company has been around for 100 years, and so it'll continue to do well. And again, as an investor, you can't just hide in cash because if we're going to have higher inflation, your money is just going to erode away. So, you've got it. Stocks still remain a good defense against inflation. But what you don't want to buy is high expensive stocks that are really going to be affected not only by the tariffs, but the policy changes and potentially just having multiple compression because we have higher rates.