Warren Buffett, Greg Abel, and Ajit Jain attend Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska, on May 3, 2025.
CNBC
With new CEO Greg Abel, Berkshire Hathaway has taken a formal step toward reversing Warren Buffett’s rare missteps.
The conglomerate, which owns GEICO Insurance and BNSF Railway, listed its entire 27.5% stake in Kraft Heinz in the filing, clearing the way for Berkshire to exit its position as a maker of hot dogs and macaroni and cheese. Berkshire is Kraft Heinz’s largest shareholder.
Kraft Heinz stock fell 5% in premarket trading on the news.
The move underscores Mr. Abel’s desire to move on from a deal that has long stood out as a rare stain on Mr. Buffett’s storied career. Kraft Heinz stock has fallen about 70% since the 2015 merger that created the ketchup giant, weighed down by changing consumer tastes, rising costs and slowing growth across its core brands. Berkshire also took a $3.8 billion writedown on the value of its holdings last year, although some of its losses have been offset by billions of dollars in dividends over the years.
The filing also comes as Kraft Heinz seeks to split into two companies. One focuses on sauces, spreads and shelf-stable foods, and the second includes North American staples such as Oscar Mayer meats, Kraft cheese singles and Lunchables.
Buffett himself has admitted to being frustrated with how the merger he orchestrated a decade ago ultimately fell apart.
Buffett, who remains Berkshire’s chairman, told CNBC last year: “It certainly wasn’t a great idea to combine the two companies, but I don’t think breaking them up would solve the problem.”
Stifel said the registration statement gives Berkshire the flexibility to reduce its position rather than implying an imminent sale.
“This registration will allow Berkshire Hathaway to reduce ownership. We believe no transaction notification is required outside of quarterly 13F filings,” Stifel analysts wrote. “The next update could be in mid-May when Berkshire reports its first fiscal quarter activity.”
Steifel reiterated his affirmative rating and $26 price target on Kraft Heinz, noting that although the company continues to generate strong cash flow, slower U.S. spending trends and slower growth in emerging markets could slow earnings growth.
In 2015, Berkshire partnered with Brazilian private equity firm 3G Capital to merge Kraft Foods and HJ Heinz. 3G Capital quietly exited its investment in Kraft Heinz in 2023 after years of periodically reducing its stake as the combined company struggled.
