{"id":20521,"date":"2026-01-22T19:36:23","date_gmt":"2026-01-22T19:36:23","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2026\/01\/22\/berkshires-new-ceo-breaks-with-warren-buffetts-patient-playbook\/"},"modified":"2026-01-22T19:36:24","modified_gmt":"2026-01-22T19:36:24","slug":"berkshires-new-ceo-breaks-with-warren-buffetts-patient-playbook","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2026\/01\/22\/berkshires-new-ceo-breaks-with-warren-buffetts-patient-playbook\/","title":{"rendered":"Berkshire\u2019s New CEO Breaks With Warren Buffett\u2019s Patient Playbook"},"content":{"rendered":"
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Greg Abel\u2019s reign as CEO of Berkshire Hathaway has begun. Kevin Dietsch\/Getty Images<\/span><\/figcaption><\/figure>\n

Fresh into his tenure as CEO of Berkshire Hathaway<\/a>, Greg Abel<\/a> is beginning to show hints at how his leadership might take shape. In a bold move, one of the nascent executive\u2019s first actions will likely be to undo a rare mistake made by his successor, Warren Buffett<\/a>.<\/p>\n

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Berkshire is clearing the way to potentially sell its 27.5 percent stake in Kraft Heinz<\/a>, according to a Jan. 20 SEC filing by the food processing company that noted Berkshire \u201cmay offer to sell\u201d its more than 325 million shares. Such a move would unbind the conglomerate from the ailing Kraft Heinz, which has shed 70 percent of its market value over the past decade.<\/p>\n

\u201cOur focus continues to be on maximizing long-term value for our business and for all shareholders,\u201d said a Kraft Heinz spokesperson in a statement. Berkshire did not respond to requests for comment from Observer.<\/p>\n

Buffett oversaw Berkshire\u2019s investment in the food company more than a decade ago, when he teamed up with Brazil\u2019s 3G Capital Management to buy H.J. Heinz in 2013. Two years later, the duo merged it with Kraft Foods, and Berkshire hasn\u2019t touched its stake\u2014acquired for $9.8 billion\u2014since 2015.<\/p>\n

The investment, for which Buffett has since admitted he \u201coverpaid<\/a>,\u201d has failed to benefit Berkshire. Kraft Heinz shares fell 22 percent in the past 12 months alone and are down more than 30 percent over the past five years. Berkshire in August 2025 said it took a $3.7 billion write-down on the stake during its second quarter, following a $3 billion write-down in 2019. And, in a sign that the conglomerate was preparing to unwind its position, Berkshire in May ceded two of its seats on the company\u2019s board of directors.<\/p>\n

Buffett also expressed dismay in September when Kraft Heinz announced plans to split into two companies. Flagship brands like Heinz Ketchup and Kraft Mac & Cheese will fall under a company known as Global Taste Elevation Co., while less succesful businesses like Oscar Mayer and Lunchables will become part of North American Grocery Co. While the 2015 merger evidently hasn\u2019t paid off, separating Kraft Heinz won\u2019t fix its issues, Buffett told CNBC in an interview<\/a>, adding that both he and Abel were disappointed in the decision.<\/p>\n

Buffett, 95, stepped down from the helm of Berkshire at the end of 2025, ending a 55-year run as one of America\u2019s most successful investors. His shoes are now filled by Abel, 63, a long-time Berkshire executive widely seen as Buffett\u2019s heir apparent.<\/p>\n

Berkshire\u2019s newest move \u201creflects Abel\u2019s desire to clean up its investment portfolio early in his tenure,\u201d said Erin Lash<\/a>, Morningstar\u2019s senior director of consumer equity research, in an analyst note. \u201cWe think the market is unlikely to grant a higher valuation until a durable improvement in volumes becomes evident.\u201d<\/p>\n

So far, Abel has expressed a desire to follow in Buffett\u2019s footsteps. But moving forward with a sale of Berkshire\u2019s Kraft Heinz stake would mark a departure from the former CEO\u2019s playbook, which was defined by a reluctance to sell underperforming assets.<\/p>\n

Berkshire is \u201cvery reluctant to sell sub-par businesses as long as we expect them to generate at least some cash<\/a> and as long as we feel good about their managers and labor relations,\u201d Buffett told shareholders in 1996.\u00a0\u201cGin rummy managerial behavior (discard your least promising business at each turn) is not our style,\u201d he added.<\/p>\n

\t\t\t\t\"Berkshire\u2019s<\/p><\/div>\n