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Berkshire Hathaway Dumps $16.7 Billion Kraft Heinz Stake

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  Published in Stocks and Investing on Monday, February 16th 2026 at 16:28 GMT by Seattle Times
      Locales: Nebraska, Illinois, Pennsylvania, UNITED STATES

Omaha, Nebraska - February 16th, 2026 - In a move keenly watched by the investment world, Greg Abel, the designated successor to Warren Buffett at Berkshire Hathaway, is leading the company's complete divestiture of its substantial 325 million share stake in Kraft Heinz. This represents a significant shift in strategy for the conglomerate and has already sparked debate about the future direction of Berkshire's investment philosophy.

The sale, initially disclosed in a regulatory filing late Monday, involves shares currently valued at approximately $16.7 billion. While Berkshire Hathaway partnered with 3G Capital in 2015 to acquire a major position in Kraft Heinz, the decision to exit entirely indicates a re-evaluation of the company's long-term viability and alignment with Abel's investment priorities. The timing of the sale, occurring as Kraft Heinz continues to grapple with declining sales figures and brand revitalization challenges, has heightened speculation.

For decades, Warren Buffett's investment approach has been synonymous with "value investing" - identifying undervalued companies with strong fundamentals. However, the Kraft Heinz investment, while initially promising, has become a drag on Berkshire's overall portfolio performance. Kraft Heinz's stock has consistently underperformed market benchmarks in recent years, facing pressures from evolving consumer tastes, increased competition in the packaged foods sector, and persistent inflationary forces that have squeezed margins. Recent attempts to streamline operations and re-energize key brands have yielded limited success, prompting Abel to reassess its place within the Berkshire portfolio.

Analysts suggest several potential drivers behind the divestiture. Edward Jones analyst Christopher Worwag, commenting on the news, stated, "This is a bold move, and the market is actively trying to decipher the rationale. It's likely a combination of portfolio rebalancing and a sober assessment of Kraft Heinz's long-term growth trajectory." The most immediate impact will be freeing up a substantial amount of capital - nearly $17 billion - that Berkshire can deploy into more promising ventures.

This move is widely interpreted as a clear signal that Abel intends to prioritize investments in companies exhibiting stronger growth potential and possessing more robust competitive advantages. Buffett himself has frequently emphasized the importance of investing in businesses he understands and that can demonstrably deliver sustained earnings growth. Kraft Heinz, burdened by legacy brands and struggling to adapt to the rapidly changing food landscape, seemingly no longer meets these criteria.

The question now turns to where Berkshire will reinvest these funds. Several sectors are being touted as potential targets. Renewable energy continues to attract significant investment, and Berkshire's existing holdings in companies like MidAmerican Energy suggest a continued interest in this area. Technology remains a key area of focus, although Buffett has historically been cautious about investing in tech companies, a trend that Abel may continue to moderate. Another possibility is increased investment in private companies, mirroring a trend seen among other large investment firms.

The regulatory filing offered no details regarding the buyer(s) of the Kraft Heinz shares or whether the sale is being conducted through a single transaction or a series of smaller sales. This opacity is typical of Berkshire's dealings, but it adds to the intrigue surrounding the move. It's possible Berkshire is utilizing a block trade mechanism to minimize market disruption, or that the shares are being acquired by a strategic investor seeking a long-term position in Kraft Heinz.

While the Kraft Heinz investment wasn't a complete failure - Berkshire did receive dividends during its holding period - it ultimately failed to deliver the returns expected by Buffett and is now considered a strategic misstep. Abel's decisive action demonstrates his willingness to move beyond past investments that are no longer aligned with Berkshire's evolving strategic goals. This marks a significant step in the transition of leadership and provides a crucial insight into the investment approach that will define Berkshire Hathaway in the years to come. Investors will be closely monitoring Abel's subsequent moves to gain a clearer understanding of his vision for the future of this global investment powerhouse.