Berkshire Hathaway's New CEO Signals Shift Away from Warren Buffett's Patient Approach to Investing
In his first weeks as CEO, Berkshire Hathaway leader Greg Abel has already begun to rewrite the playbook that defined his predecessor's investment strategy. The 63-year-old executive is poised to offload the conglomerate's struggling stake in Kraft Heinz, a move that would depart from the patient approach of the late Warren Buffett.
Buffett's long-standing involvement with Kraft Heinz began over a decade ago when he partnered with Brazilian investor 3G Capital Management to acquire H.J. Heinz in 2013. However, the investment has since underperformed, with the company's market value plummeting by over 70% in the past decade.
Berkshire Hathaway has taken significant write-downs on its stake in Kraft Heinz, including a $3.7 billion hit in August 2025 and another $3 billion two years prior. The conglomerate also recently ceded control of some of the company's board seats, signaling its intention to distance itself from an asset that has yet to deliver returns.
Abel's willingness to exit Kraft Heinz comes as he takes the reins at Berkshire Hathaway, which is now looking to maximize long-term value for all shareholders. Analysts see this move as a reflection of Abel's desire to clean up his portfolio and potentially reap benefits from a sale.
However, the decision marks a significant shift away from Buffett's approach to investing, which emphasized holding onto underperforming assets in hopes that they would eventually improve. In 1996, Buffett explicitly stated that Berkshire Hathaway is not like the "gin rummy" of investment firms, which discards the least promising businesses at every turn.
The sale of Berkshire's stake in Kraft Heinz represents a bold move by Abel to assert his own leadership style and navigate the company towards more sustainable long-term value creation.
In his first weeks as CEO, Berkshire Hathaway leader Greg Abel has already begun to rewrite the playbook that defined his predecessor's investment strategy. The 63-year-old executive is poised to offload the conglomerate's struggling stake in Kraft Heinz, a move that would depart from the patient approach of the late Warren Buffett.
Buffett's long-standing involvement with Kraft Heinz began over a decade ago when he partnered with Brazilian investor 3G Capital Management to acquire H.J. Heinz in 2013. However, the investment has since underperformed, with the company's market value plummeting by over 70% in the past decade.
Berkshire Hathaway has taken significant write-downs on its stake in Kraft Heinz, including a $3.7 billion hit in August 2025 and another $3 billion two years prior. The conglomerate also recently ceded control of some of the company's board seats, signaling its intention to distance itself from an asset that has yet to deliver returns.
Abel's willingness to exit Kraft Heinz comes as he takes the reins at Berkshire Hathaway, which is now looking to maximize long-term value for all shareholders. Analysts see this move as a reflection of Abel's desire to clean up his portfolio and potentially reap benefits from a sale.
However, the decision marks a significant shift away from Buffett's approach to investing, which emphasized holding onto underperforming assets in hopes that they would eventually improve. In 1996, Buffett explicitly stated that Berkshire Hathaway is not like the "gin rummy" of investment firms, which discards the least promising businesses at every turn.
The sale of Berkshire's stake in Kraft Heinz represents a bold move by Abel to assert his own leadership style and navigate the company towards more sustainable long-term value creation.