Warren Buffett's successor could be selling off millions of Berkshire Hathaway's Kraft Heinz shares

Core Viewpoint - Berkshire Hathaway's new CEO, Greg Abel, may be considering selling its 325 million shares in Kraft Heinz, a company co-created by Warren Buffett in 2015, indicating a potential shift in corporate strategy [1][2]. Group 1: Company Background - The merger of Kraft and Heinz was orchestrated by Buffett and Brazilian investment firm 3G Capital, who believed in the strength of their brands [2]. - Over time, Buffett recognized that Kraft Heinz's competitive advantage was weakening as consumers shifted towards store brands and away from processed foods [3]. Group 2: Financial Performance - Berkshire Hathaway took a $3.76 billion writedown on its Kraft Heinz stake last summer, reflecting concerns about the company's performance [3]. - Following the announcement of the potential sale, Kraft Heinz shares fell nearly 4% to $22.85 [4]. Group 3: Leadership and Strategy - Analysts suggest that Abel's leadership style may differ from Buffett's, with a potential focus on divesting underperforming subsidiaries rather than solely making acquisitions [6]. - Abel has been managing Berkshire's non-insurance companies since 2018 and became CEO on January 1, indicating familiarity with the company's operations [6]. Group 4: Market Reactions and Future Considerations - Investor Chris Ballard noted that selling Kraft Heinz could be an easy decision for Abel, but unloading such a large stake on the public market may be challenging [7]. - Buffett previously stated that Berkshire would not accept a block bid for its shares unless the same offer was extended to all Kraft Heinz shareholders, indicating a cautious approach to any potential sale [8].