Happy Valentine's Day everyone! I hope you're in the mood for love, because a mammoth buyout was the main proponent behind today's move higher in the broad-based S&P 500 (SNPINDEX: ^GSPC ) . Despite JPMorgan economist Mike Feroli slightly lowering his fourth-quarter 2013 GDP growth forecast to 1.9% from 2.1% due to the effects of spending cuts in the second-half of the year, the S&P 500 advanced fractionally by 1.05 points (0.07%), to close at 1,521.38.
The big reason for today's fractionally higher finish in the S&P 500 was an announcement that Warren Buffett's Berkshire Hathaway (NYSE: BRK-A ) would be partnering with Brazilian private-equity firm 3G Capital to buy ketchup maker Heinz (NYSE: HNZ ) , for $23.2 billion. The move looks like a win-win-win for all three parties involved. Buffett prefers brand-name investments with proven track records, modest growth, and solid dividends, which Heinz will offer. 3G Capital has been trying to work its way into the food service sector, and Heinz is a relatively safe way of doing so. Finally, for Heinz shareholders, they get a robust all-cash deal that added 20% to their investment overnight. Not too shabby considering that Heinz' shares had vacillated in less than a $10 range over the past year.
Surprisingly, Heinz's 20% move higher was not the best performer of the day. In fact, it wasn't even close! That honor went to alcoholic beverage producer Constellation Brands (NYSE: STZ ) , which soared 37%, its largest one-day gain since July 1986 according to Bloomberg, following an announcement that it would be purchasing the rights to the Corona and Modelo beer brands in the United States. Anheuser-Busch InBev had received backlash about a lack of competition if it purchased Negro Modelo, so the $2.9 billion sale of Modelo's brewery in Piedras Negras to Constellation Brands – a cheap price according to research firm D.A. Davidson – clears Anheuser to continue its pursuit of the remainder of Negro Modelo. Yet again, it looks like everyone comes out a winner here.
Finally, solar panel producers First Solar (NASDAQ: FSLR ) and SunPower continued their rally, just a day after being upgraded to "buy" by Citigroup. Whereas, in years past, domestic solar panel producers were at a distinct pricing disadvantage to Chinese manufacturers, the tables have completely turned. Now, with President Obama intent on securing America's energy independence, and First Solar landing a slew of large projects, its outlook is brightening as quickly as the stock. Unfortunately, you won't find me ending my CAPScall of underperform anytime soon unless I see big subsidies rolling out for the solar sector. Shares of First Solar advanced 7.6% on the day.
Will the Heinz purchase be a boon or a bust for Berkshire?
Warren Buffett's long track record of success has made him one of the best investors of all time. With the Buffett at the helm, Berkshire Hathaway has grown book value per share at a compounded annual rate of 19.8% for nearly 50 years! Despite an incredible historical track record, investors have to understand the key issues to watch moving forward. To help investors, The Fool's resident Berkshire Hathaway expert Joe Magyer has created this premium research report on the company. Inside, you'll receive ongoing updates as key news hits, as well as reasons to both buy and sell the stock. Claim a copy by clicking here now.