Associated British Foods (LSE:ABF, Financial) stock underperformed due to short-term margin pressure, but in our view the business remains an attractive long-term investment. ABF is a fourth-generation family-controlled business with leading food brands like Ovaltine (outside of the United States) and Twinings (a major tea company since the early 1700s), a strong retail presence through Primark, a fashion retailer with nearly 400 stores in 13 countries, and a food ingredient business selling sugar and yeast, among other products. The balance sheet is strong with excess net cash and an attractive valuation.
From the Yacktman Fund (Trades, Portfolio)'s second-quarter 2021 shareholder letter.
