Greg Abel Signals Shift as Berkshire Weighs Kraft Heinz Exit?

Berkshire Hathaway Inc. BRK.B might exit its position in Kraft Heinz. In that case, this will be Greg Abel’s first strategic move after he became the new CEO. If this happens, it would mark an end to Buffett's investment in the entity. Buffett and 3G Capital had joined forces to craft the high-profile merger of Kraft Foods and H.J. Heinz, creating Kraft Heinz back in 2015. 

BRK.B currently has a 27.5% stake in Kraft Heinz, making it the company’s largest shareholder. BRK.B’s earnings from non-controlled businesses include earnings from its investments in Kraft Heinz. Buffett’s investment in Kraft Heinz was worth $8.6 billion as of Sept. 30, 2025.

Last September, to increase strategic focus and lower complexity, Kraft Heinz decided to separate into two independent, publicly traded companies through a tax-free spin-off.  In fact, Berkshire wrote down $3.76 billion against its Kraft Heinz stake, following the latter’s announcement that it was evaluating potential strategic transactions on May 20, 2025. 

Berkshire boasts an impressive inorganic story as well as an equity investment portfolio. This conglomerate targets businesses with durable earnings power, strong returns on equity, modest debt and skilled management—acquired only at sensible valuations. Other than Kraft Heinz, Berkshire’s other equity investments include Occidental and Berkadia. These have collectively fueled Berkshire’s growth by adding resilient cash-generating businesses, diversifying income streams and expanding its investment base.

Impressive Inorganic Profile of BRK.B’s Competitors

Progressive Corporation’s PGR acquisition strategy focuses on building scale, technology and distribution while reinforcing its insurance portfolio. Progressive pursues disciplined, selective deals that deliver strategic value and complement its core strengths. Through targeted acquisitions, Progressive enhances efficiency and customer reach, ensuring long-term competitiveness in a dynamic insurance landscape.

Travelers Companies’ TRV acquisition strategy emphasizes reinforcing core insurance strengths while expanding into complementary markets. Travelers seeks disciplined acquisitions that enhance underwriting, technology and distribution capabilities. With a focus on sustainable shareholder value, Travelers carefully evaluates opportunities that bolster its competitive edge while maintaining a conservative balance sheet.

BRK.B’s Price Performance

Shares of BRK.B have gained 1.8% in a year, outperforming the industry.

BRK.B’s Expensive Valuation

BRK.B trades at a price-to-book value ratio of 1.49, above the industry average of 1.42. It carries a Value Score of C.

Estimate Movement for BRK.B

The Zacks Consensus Estimate for BRK.B’s first-quarter 2026 EPS witnessed no movement in the past seven days. The same for 2026 has moved 22% north in the same time frame.

The consensus estimate for BRK.B’s 2026 revenues indicates year-over-year increase, while the same for EPS suggests a decline.  

BRK.B stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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