Buffett Successor's First Big Move Could Be Exiting 1 of Berkshire's Largest Holdings

Core Viewpoint - Berkshire Hathaway may be divesting its stake in Kraft Heinz, indicating a strategic shift under new CEO Greg Abel, potentially addressing past investment missteps by Warren Buffett [1][2]. Company Overview - Berkshire Hathaway's portfolio is valued at $267 billion, with Kraft Heinz being the ninth-largest holding, representing approximately 3.2% of the portfolio [2]. - Berkshire Hathaway owns about 325 million shares of Kraft Heinz, valued at approximately $8.5 billion, making it the largest shareholder with a 27.5% ownership stake [2]. Kraft Heinz Performance - Kraft Heinz's stock price has significantly declined from over $90 per share in 2017 to around $22.40 per share, reflecting a 10-year average annualized return of about -11% [8]. - The company has faced challenges since its merger in 2015, which was initially valued at $46 billion, and has been described as "doomed from the start" due to various issues [5][7]. Recent Developments - Kraft Heinz filed an 8-K document indicating the potential resale of up to 325,442,152 shares by Berkshire Hathaway, which would represent the entirety of its position [4]. - The decision to potentially sell comes after Kraft Heinz announced a split back into two separate public companies, a move that disappointed Buffett [9][10].