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I Love Buffett’s Heinz Deal: Tilson

Thursday, 14 Feb 2013 | 1:17 PM ET
I Love Buffett's Heinz Deal: Tilson
Although it might appear that Warren Buffett's Berkshire Hathaway overpaid for Heinz, Whitney Tilson of T2 Partners explains why he thinks it's a winner.

Warren Buffett's Berkshire Hathaway moved to acquire H.J. Heinz for $23.3 billion Thursday in a move Whitney Tilson of T2 Partners called a winner.

"I love the deal," Tilson said.

On CNBC's "Fast Money," Tilson noted that to the untrained eye, Berkshire Hathaway and 3G Capital Group buying outstanding Heinz shares at a price equal to 20 times earnings might appear expensive, but that was not the case.

"Buffett's sitting on, easily, more than $25 billion of excess cash – and that's earning nothing right now – so putting a lot of cash to work in a very high-quality business," he said.

Another key element of the deal lies in who would be purchasing Heinz along with Buffett, the Brazilian 3G.

"It's the investment vehicle for three Brazilian billionaires who I think are, bar none, the world's best operating business managers out there," Tilson said. "The names Jorge Paulo Lemann, Marcel Telles and Carlos Sicupira are names every investor should know."

While the Brazilian investors were involved in railways and banks, Tilson added, "Their main signature deal was building Anheuser-Busch Inbev."

(Read More: Warren Buffett: 'I'm Ready for Another Elephant')

Tilson lauded their investment track record and predicted that this deal was a winner.

"I think history will repeat itself here," he said. "It makes me slightly more bullish on Berkshire here."

Tilson said that Berkshire Hathaway stock accounted for "slightly more that 10 percent" of his portfolio.

Trader disclosure: On Feb. 14, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long JPM; Joe Terranova is long DIS; Joe Terranova is long FB; Joe Terranova is long BRKB; Joe Terranova is long GS; Joe Terranova is long SWN; Joe Terranova is long XOM; Stephen Weis is long TBF; Stephen Weis is long WLT; Stephen Weis is long BAC; Stephen Weis is long C; Stephen Weis is long AIG; Stephanie Link is long AAPL; Stephanie Link is long GS; Stephanie Link is long CSCO; Stephanie Link is long SBUX; Stephanie Link is long AIG; Simon Baker is long BAC; Simon Baker is long GOOG; Simon Baker is long KRFT.

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