Anheuser-Busch InBev (BUD, Financial) is the clear-cut leading global beer company after its recent acquisition of SABMiller plc. The stock briefly traded above $130 last fall due to high expectations for the combined company’s prospects and strong investor demand for stable, cash-generative consumer staples companies. Anheuser-Busch InBev’s stock declined later in the year due in part to temporary challenges in its Brazilian business. At $110, we think the company trades at a moderate discount to value for a world-class business, with a roadmap to significantly higher earnings in three years.
From Weitz Funds' first-quarter 2017 Balanced Fund shareholder letter.
