Greg Abel's Strategic Reorientation: Berkshire Hathaway Weighs Kraft Heinz Position

Since taking the helm as Berkshire Hathaway’s new CEO, Greg Abel faces a defining test of leadership: whether to maintain or exit the conglomerate’s massive stake in Kraft Heinz. This potential decision marks far more than a routine portfolio adjustment—it signals whether the new generation will chart a different course from Warren Buffett’s iconic food industry play. At 27.5% ownership, Berkshire remains Kraft Heinz’s largest shareholder, with the investment valued at $8.6 billion as of late 2025. If Greg Abel chooses divestment, it would represent an unprecedented reversal of one of Buffett’s most celebrated deals.

The Kraft Heinz saga began in 2015 when Buffett partnered with 3G Capital to merge Kraft Foods and H.J. Heinz, creating a global consumer staples powerhouse. Yet nearly a decade later, the investment has underperformed, forcing Berkshire to write down $3.76 billion following Kraft Heinz’s announcement of strategic transaction evaluations in May 2025. Last year, the company revealed plans for a tax-free spin-off to separate into two independent entities—a move aimed at increasing strategic focus while reducing operational complexity. For Greg Abel, this juncture presents an early opportunity to demonstrate his portfolio management philosophy: should he preserve legacy positions out of institutional continuity, or prune underperforming holdings to redeploy capital more dynamically?

How Berkshire’s Peers Approach Portfolio Evolution

The strategic question facing Greg Abel becomes clearer when examining how competitors manage their inorganic portfolios. Progressive Corporation pursues targeted acquisitions that blend scale, technology and distribution while fortifying its insurance operations. Through disciplined deal-making, Progressive enhances efficiency and expands customer reach across evolving market conditions.

Travelers Companies similarly emphasizes selective acquisitions that reinforce underwriting capabilities and distribution networks. Rather than chasing growth at any cost, Travelers maintains a conservative balance sheet while opportunistically acquiring businesses that strengthen competitive positioning. Both insurers demonstrate that strategic exit decisions—knowing when to cut losses or pass on opportunities—matter as much as acquisition prowess.

Valuation Headwinds and Market Expectations

Berkshire’s stock performance tells a mixed story. Shares gained 1.8% over the past year, underperforming relative to industry benchmarks. More concerning is the valuation spread: BRK.B trades at a price-to-book ratio of 1.49, exceeding the industry average of 1.42 and carrying a Value Score of C, signaling limited discount appeal.

Analyst expectations for 2026 suggest revenue growth but earnings contraction, reflecting investor caution about the conglomerate’s near-term trajectory. The Zacks consensus has assigned the stock a Rank #4 (Sell) rating, indicating skepticism about near-term momentum. For Greg Abel, these headwinds underscore the urgency of demonstrating active capital stewardship—whether that means repositioning the Kraft Heinz stake or reallocating resources toward higher-return opportunities.

The path forward hinges on how decisively Berkshire’s new leadership embraces change. Greg Abel’s inaugural major choices will signal whether the company remains wedded to legacy holdings or adapts its portfolio strategy to meet 2026’s evolving market landscape.