What Will Kroger Acquire?

My take is that Kroger is most likely to make a big acquisition outside the grocery business unless it can get a major grocer that would expand its geographic reach. The most logical acquisition for Kroger outside the grocery business would be Rite Aid. Even if it does not make an acquisition, Kroger is still a great value investment because of its profits.

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Who Else Would Acquire Rite Aid?

Yes it is a bit of a dark horse, but Rite Aid does meet some of Warren Buffett’s value criteria: it is a good company that has been going through a rough patch yet still has the potential to generate a lot of cash. It also has an easy-to-understand business model in a decidedly unglamorous industry—selling shaving cream and prescriptions. Rite Aid also meets another one of Uncle Warren’s classic criteria: it is a company that an idiot could run if necessary.

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