Greg Abel’s Leadership Takes Shape at Berkshire Hathaway
Fresh into his tenure as CEO of Berkshire Hathaway, Greg Abel is beginning to show hints at how his leadership might take shape. In a bold move, one of the nascent executive’s first actions will likely be to undo a rare mistake made by his predecessor, Warren Buffett. Kevin Dietsch/Getty Images
A Departure from Buffett’s Playbook
Berkshire is clearing the way to potentially sell its 27.5 percent stake in Kraft Heinz, according to a Jan. 20 SEC filing by the food processing company that noted Berkshire “may offer to sell” 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. This decision reflects Abel’s desire to clean up Berkshire’s investment portfolio early in his tenure, as noted by Erin Lash, Morningstar’s senior director of consumer equity research.
Buffett oversaw Berkshire’s investment in the food company more than a decade ago, when he teamed up with Brazil’s 3G Capital Management to buy H.J. Heinz in 2013. Two years later, the duo merged it with Kraft Foods, and Berkshire hasn’t touched its stake—acquired for $9.8 billion—since 2015. However, the investment has failed to benefit Berkshire, with Kraft Heinz shares falling 22 percent in the past 12 months alone and down more than 30 percent over the past five years.
Abel’s Move to Distance from Underperforming Assets
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’s board of directors. Buffett also expressed dismay in September when Kraft Heinz announced plans to split into two companies, stating that separating the company won’t fix its issues.
Buffett, 95, stepped down from the helm of Berkshire at the end of 2025, ending a 55-year run as one of America’s most successful investors. His shoes are now filled by Abel, 63, a long-time Berkshire executive widely seen as Buffett’s heir apparent. Abel has expressed a desire to follow in Buffett’s footsteps, but moving forward with a sale of Berkshire’s Kraft Heinz stake would mark a departure from the former CEO’s playbook, which was defined by a reluctance to sell underperforming assets.
A New Era for Berkshire Hathaway
As Abel takes the reins, he is signaling a break from Buffett’s patient playbook. Berkshire’s newest move “reflects Abel’s desire to clean up its investment portfolio early in his tenure,” said Lash. “We think the market is unlikely to grant a higher valuation until a durable improvement in volumes becomes evident.” With this move, Abel is demonstrating his commitment to maximizing long-term value for Berkshire’s business and shareholders.
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