Berkshire Hathaway's New CEO Signals Shift Away From Warren Buffett's Investment Approach
As Berkshire Hathaway's Greg Abel assumes the role of CEO, his first moves suggest a break from Warren Buffett's long-standing investment playbook. One notable development is the conglomerate's decision to potentially sell its 27.5 percent stake in Kraft Heinz, according to a recent SEC filing.
Berkshire has held onto this stake since 2013, when it partnered with Brazil's 3G Capital Management to acquire H.J. Heinz for $9.8 billion. However, the investment has failed to yield significant returns, with Kraft Heinz shares plummeting over the past five years. The company recently took a $3.7 billion write-down on the stake in August 2025 and has ceded two of its seats on the board.
Abel's decision may signal a shift away from Buffett's patient approach to investing, which involves holding onto underperforming assets until they show significant improvement. In contrast, Abel has expressed a desire to "clean up" Berkshire's investment portfolio early in his tenure, according to Morningstar analyst Erin Lash.
The potential sale of Kraft Heinz stake would mark a departure from Buffett's reluctance to sell sub-par businesses, which he deemed "not our style." Instead, it reflects a more pragmatic approach, with the goal of maximizing long-term value for Berkshire and its shareholders. The market may be skeptical about granting a higher valuation until significant improvements are seen in Kraft Heinz's business, according to Lash.
As Abel navigates his first years as CEO, he is facing several challenges, including managing the ongoing struggles of Kraft Heinz. However, his willingness to adapt Buffett's playbook suggests a fresh approach to investing, one that prioritizes returns over sentimental attachment to underperforming assets. The outcome of this shift remains to be seen, but it marks an intriguing turning point in Berkshire Hathaway's investment strategy.
As Berkshire Hathaway's Greg Abel assumes the role of CEO, his first moves suggest a break from Warren Buffett's long-standing investment playbook. One notable development is the conglomerate's decision to potentially sell its 27.5 percent stake in Kraft Heinz, according to a recent SEC filing.
Berkshire has held onto this stake since 2013, when it partnered with Brazil's 3G Capital Management to acquire H.J. Heinz for $9.8 billion. However, the investment has failed to yield significant returns, with Kraft Heinz shares plummeting over the past five years. The company recently took a $3.7 billion write-down on the stake in August 2025 and has ceded two of its seats on the board.
Abel's decision may signal a shift away from Buffett's patient approach to investing, which involves holding onto underperforming assets until they show significant improvement. In contrast, Abel has expressed a desire to "clean up" Berkshire's investment portfolio early in his tenure, according to Morningstar analyst Erin Lash.
The potential sale of Kraft Heinz stake would mark a departure from Buffett's reluctance to sell sub-par businesses, which he deemed "not our style." Instead, it reflects a more pragmatic approach, with the goal of maximizing long-term value for Berkshire and its shareholders. The market may be skeptical about granting a higher valuation until significant improvements are seen in Kraft Heinz's business, according to Lash.
As Abel navigates his first years as CEO, he is facing several challenges, including managing the ongoing struggles of Kraft Heinz. However, his willingness to adapt Buffett's playbook suggests a fresh approach to investing, one that prioritizes returns over sentimental attachment to underperforming assets. The outcome of this shift remains to be seen, but it marks an intriguing turning point in Berkshire Hathaway's investment strategy.
It's interesting that they're considering selling off a chunk of their Kraft Heinz stake, I mean Warren Buffett held onto it for ages, but now Abel wants to cut his losses sooner rather than later. It's like, we all know about the importance of having a solid plan B when your investments aren't paying off... 
I'm curious to see how this plays out and whether Abel can make some savvy moves to boost Berkshire's value 
i mean i get it warren buffett likes his slow n steady approach but like who can afford to wait 5 yrs for a company 2 make a profit lol? 
i think its good 4 berkshire tho cuz they need cash 2 invest in other things. what do u think bout this new ceo guy?? is he gonna make any more changes?? 
But hold on, isn't Greg Abel just following Warren Buffett's playbook or whatever? I mean, he is the CEO now, so maybe it's not that different from what we've seen before. Wait, no, that wouldn't make sense because Abel does want to "clean up" the portfolio... unless... unless he's still trying to hold onto Kraft Heinz and it just needs some more time. Or maybe this whole thing is just a massive PR move to distract us from something else? 
. Selling the Kraft Heinz stake is defo a bold move, and it'll be interesting to see how that plays out 
. But at the same time, I get why Abel wants to clean up Berkshire's portfolio - it's all about maximizing value for shareholders, right? 
? It'll be interesting to see how this plays out over the next few years... will they make some smart moves or just throw darts 
?
. As a long-time fan of Warren Buffett's investing style, I have to admit that the idea of cleaning up his portfolio is refreshing 
. I mean, who wouldn't want to cash out on a struggling business like Kraft Heinz? It's not like they've been consistently producing strong returns for the company 
. Time will tell if this change is a game-changer or just a minor tweak 
.
just kidding! He's literally making changes at Berkshire, selling off some of Buffett's favorite underperformers 
!
OMG, can you believe what's going down at Berkshire Hathaway? 
. Abel seems more focused on getting the portfolio clean and maximizing value 
. But we'll have to wait and see how it plays out in the market 
. Will Kraft Heinz get a new lease on life, or will Abel pull the plug? 
Either way, it's gonna be interesting! 
in the market right now! It's like Abel is trying to make a bold move and shake things up at Berkshire 
. But at the same time, I get why he'd want to "clean up" the portfolio - it's all about maximizing value and returns for everyone involved 
. Selling off that big stake in Kraft Heinz could mean a shift away from Warren Buffett's style, which was all about holding onto things "until they got better" 
.
. One thing for sure is that Abel's gotta navigate some tough challenges with Kraft Heinz – hope he can get it sorted out 
.