Zhi Tong Cai Jing·2026-01-21 13:29Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, may soon sell most or all of its stake in Kraft Heinz, following the company's announcement of a split into two entities, amid significant investment losses totaling approximately $8.4 billion [1][2]. Group 1: Berkshire Hathaway's Investment in Kraft Heinz - Berkshire Hathaway holds about 28% of Kraft Heinz's shares, which amounts to over 325 million common shares [2]. - The company has recorded a total investment loss of approximately $8.4 billion in Kraft Heinz, including a $3.8 billion impairment charge last year [2][3]. - Buffett expressed disappointment regarding Kraft Heinz's split, indicating that the merger in 2015 did not progress as planned [2]. Group 2: Kraft Heinz's Corporate Restructuring - Kraft Heinz is undergoing significant reforms, announcing a split into two companies after a $46 billion merger nearly a decade ago [2][3]. - The split is expected to be completed in the second half of this year, with one company focusing on Heinz ketchup and other packaged foods generating $15.4 billion in annual sales, while the other will handle Oscar Mayer hot dogs and Lunchables, with revenues around $10.4 billion [3]. Group 3: Leadership Changes and Future Outlook - Steve Cahillane has been appointed as the new CEO of Kraft Heinz, having previously led a major split at Kellogg [3]. - Berkshire Hathaway's new CEO, Greg Abel, is expected to evaluate the company's subsidiaries and may consider divesting underperforming assets, marking a potential shift in strategy from Buffett's acquisition-focused approach [4]. - Abel faces pressure from shareholders regarding the effective use of Berkshire's $382 billion cash reserve, with discussions around potential dividend payments or stock buybacks if no productive investments are identified [5]. Group 4: Berkshire Hathaway's Financial Performance - Berkshire Hathaway's third-quarter performance exceeded expectations, benefiting from improved insurance underwriting and solid contributions from its aerospace parts manufacturer, Precision Castparts [6]. - Analysts believe that Abel's leadership, combined with Berkshire's record cash reserves nearing $400 billion, will help rebuild investor confidence [6].