Greg Abel didn't waste any time. On January 1, 2026, he officially took the keys to Berkshire Hathaway, and by the end of the month, he’d already signaled that the pantry is being cleaned out. The biggest item on the "expired" list? Kraft Heinz.
For years, investors watched Warren Buffett defend this investment with a mix of loyalty and admitted regret. But the era of polite patience is over. A recent SEC prospectus reveals that Berkshire may sell its entire 325.4 million share stake in the packaged food giant. That's 27.5% of the company, a massive chunk of change currently worth around $7.3 billion. Recently making headlines in this space: The Jurisdictional Boundary of Corporate Speech ExxonMobil v Environmentalists and the Mechanics of SLAPP Defense.
If you're looking for the definitive end of the "Buffett and 3G Capital" experiment, this is it. Abel isn't just turning a page; he’s ripping it out.
Cleaning up the 2015 wreckage
To understand why Abel is moving so fast, you have to look at the math, and frankly, the math is ugly. This deal started in 2015 as a $45 billion merger. At the time, the idea was that 3G Capital's aggressive cost-cutting would turn these legacy brands into a lean, mean, cash-generating machine. Further details regarding the matter are covered by CNBC.
It didn't happen. Instead, the brands withered. Consumers traded Oscar Mayer bologna for organic deli meats and dumped sugary ketchup for artisanal hot sauces. Kraft Heinz shares are currently sitting roughly 76% below their 2017 peak.
I’ve seen plenty of "value" plays turn into "value traps," but this one was particularly painful because it had the Berkshire seal of approval. Even Buffett eventually admitted they overpaid. In his first annual shareholder letter released this February, Abel was even more blunt. He noted the investment had "fallen far short of reasonable expectations." When a guy who values long-term compounding calls a decade-long holding "disappointing," the writing isn't just on the wall—it’s in neon lights.
The straw that broke the ketchup bottle
What actually triggered this sudden exit? It likely comes down to a fundamental disagreement over the company's future structure.
Last year, Kraft Heinz management floated a plan to split the company in two: one side for the sauces and high-growth brands, and the other for the slower North American staples. Buffett hated the idea. He’s always been a "keep it together" kind of guy. By spring 2025, Berkshire had already pulled its two representatives from the Kraft Heinz board.
When Steve Cahillane took over as the new CEO of Kraft Heinz and eventually paused that split to focus on "fixing" things, it wasn't enough to appease Omaha. Abel is a pragmatist. He’s looking at a company that just reported a 4.2% drop in organic net sales for the end of 2025. He sees a business where inflationary pressures are eating margins faster than their "efficiency initiatives" can save them.
A $373 billion war chest and no room for laggards
Don't think for a second that selling Kraft Heinz is a sign of Berkshire retreating. It’s the opposite. Berkshire ended 2025 with a record $373.3 billion in cash and U.S. Treasuries. Abel is sitting on a mountain of dry powder.
He doesn't need a struggling ketchup maker weighing down the portfolio. The opportunity cost of holding $7 billion in a stagnant stock is too high when you have Abel's mandate to find the next big acquisition.
By registering the entire stake for resale, Abel is giving himself the flexibility to exit "from time to time." It’s a tactical move. He isn't forced to dump it all tomorrow and tank the price further, but he’s told the market exactly where he stands. The "Buffett premium" that used to protect names like Kraft Heinz is evaporating, and Abel is fine with that. He'd rather have the cash.
The reality of the exit
- The Write-down: Berkshire already took an $8.25 billion impairment charge in 2025 related to Kraft Heinz and Occidental. They've already swallowed the bitter pill.
- The Discount: Analysts expect that offloading a 27% stake will require a discount of about 10% to current market prices.
- The Concentration: Abel is doubling down on what works—Apple, American Express, Coca-Cola, and those lucrative Japanese trading houses.
What this means for your portfolio
If you're holding Kraft Heinz because you're "investing like Buffett," you need to check the calendar. It’s 2026. The guy in charge now is Greg Abel, and he doesn't have a sentimental attachment to the 2015 merger.
Kraft Heinz is currently a "show-me" story. They’re plowing $600 million back into brand spending, but sales are still forecasted to slide by 3% this year. With a dividend yield hovering near 6.7%, it looks like a juicy income play, but that yield is only as good as the earnings supporting it.
Abel’s first major move as CEO sends a clear message to every subsidiary and every holding in the Berkshire portfolio: performance matters more than history. If a business isn't pulling its weight, it’s gone. Honestly, it’s the kind of cold-blooded discipline Berkshire needs for the next sixty years.
If you’re still holding KHC, watch the volume on the next few trading sessions. If Berkshire starts selling in chunks, the downward pressure will be relentless. It’s time to stop looking at what this company was in 1950 and start looking at what it is today—a legacy brand struggling to find its footing in a world that’s moved on.
Take a page from Abel’s book. If the fundamental economic prospects have changed, don't be afraid to cut the cord. There are better places to put $7 billion.
