Just weeks into his tenure as Berkshire Hathaway’s CEO, Greg Abel has ignited Wall Street with a bold signal: the conglomerate may unload its entire 27.5% stake in Kraft Heinz, a position worth about $7.5 billion that Warren Buffett once championed but later rued as a rare misstep. The move, disclosed in a Kraft Heinz SEC filing on January 20, 2026, registers up to 325.4 million shares for potential resale, sending the stock tumbling as much as 7.5% to near six-year lows before a partial rebound.

This filing arrives amid Kraft Heinz’s plan to split into two entities by late 2026—one for sauces and condiments, the other for North American staples like Oscar Mayer and Kraft cheese—a reversal Buffett openly criticized. “It certainly didn’t turn out to be a brilliant idea to put them together, but I don’t think taking it apart will fix it,” Buffett said in September 2025, as reported by CNBC. Abel, who oversees Berkshire’s non-insurance operations since 2018, appears ready to sever ties early.

The stake originated from Berkshire’s 2013 partnership with 3G Capital to acquire H.J. Heinz for $23.3 billion, followed by the 2015 merger with Kraft Foods that created the combined entity, per CNBC and CNBC. Berkshire received 325 million shares at a cost of $9.8 billion, as detailed in Buffett’s 2015 shareholder letter. The investment peaked at $30 billion in 2016 but has languished around $10 billion recently, implying a $2.3 billion unrealized loss offset partially by dividends.

Buffett’s Rare Admission of Overpayment

Buffett candidly addressed the blunder in a 2019 CNBC interview: “I had ‘overpaid’ for a good company,” referring to the Kraft portion, according to CNBC’s Buffett Archive. At the 2019 annual meeting, he elaborated: “We paid too much for Kraft… retailers… has gained some power,” highlighting how private labels like Costco’s Kirkland eroded brand pricing power, as noted in CNBC transcripts.

Berkshire has taken multiple impairments, including $3.8 billion in 2019 and $3.76 billion last summer, per CNBC. Morningstar analyst Greggory Warren told clients: “We… view the timing of this sale as being reflective of Abel’s desire to clean up and pare down the investment portfolio early in his tenure,” as quoted in the same CNBC report. Berkshire resigned its two board seats last spring, signaling growing distance.

Kraft Heinz’s woes stem from underinvestment, cost pressures, and shifting tastes away from processed foods toward store brands, with sales stagnating despite $6 billion in pretax profits on $7 billion in tangible assets, per Buffett’s estimates cited in CNBC’s Warren Buffett Watch.

Abel’s Operator Instincts Take Charge

Analysts see this as Abel’s first portfolio purge, contrasting Buffett’s buy-and-hold ethos. CFRA’s Cathy Seifert noted: “My sense is that Greg Abel’s leadership style may be a departure from Buffett’s, and this sale, if completed, would represent a shift in corporate mindset,” according to Fortune. Check Capital’s Chris Ballard called it “the most low-hanging fruit for Greg,” suggesting a strategic buyer might emerge given the block size.

The exit would swell Berkshire’s cash pile—already $381.7 billion as of September 30, 2025, per the SEC filing—to over $350 billion excluding short-term holdings, fueling calls for dividends amid no repurchases since May 2024. Bloomberg reported: “It took just three weeks for Berkshire Hathaway’s Greg Abel to cut the final tether to one of Warren Buffett’s rare mistakes,” in its January 21 coverage.

Business Insider highlighted potential discounts: Warren estimates a 10% hit on full sale, yielding a $1.3 billion realized loss, underscoring execution risks for such a large block.

Kraft Heinz’s Fractured Path Forward

Kraft Heinz’s September 2025 split announcement, detailed in CNBC, aims to unlock value but faces skepticism. Buffett told CNBC that Abel conveyed similar disappointment to the company. Shares traded at $23.20 by January 24, down 1.4% weekly after the 7% drop, per CNBC.

Investor reactions on platforms like X emphasize Abel’s decisiveness, with posts noting the stake as Berkshire’s ninth-largest holding in a $267 billion portfolio. Confirmation of sales awaits Berkshire’s mid-May 13F filing, as explained by Investopedia.

Yahoo Finance speculated on further reviews: “KHC Is Low-Hanging Fruit for Greg Abel: Which Warren Buffett Stock Will He Sell Next?” pointing to underperformers like Coca-Cola amid consumer shifts to healthier options.

Cash Hoard and Berkshire’s Next Chapter

Proceeds would bolster Berkshire’s war chest, enabling deals in a market where Buffett found no “elephants.” Abel’s style—more hands-on with subsidiaries—could accelerate capital reallocation, per Larry Cunningham in Business Insider: “Greg Abel is an operator at heart—he’ll engage more directly with underperforming subsidiaries.”

TipRanks estimated a $2.5 billion loss on exit, framing it as correcting Buffett’s error. As Berkshire’s market cap nears $1 trillion, with BRK.B at $478.97 on January 23, investors eye Abel’s blueprint for the post-Buffett era.

This maneuver, while crystallizing losses, frees resources from a decade of stagnation, positioning Berkshire for opportunities in energy, rails, and beyond where Abel excels.