The new CEO of Berkshire Hathaway has expressed approval for the unexpected strategic shift announced this week by the new CEO of The Kraft Heinz Company. In the food giant's fourth-quarter earnings report, Steve Cahillane stated that within five weeks of taking the helm, he recognized that "the company's opportunities are greater than anticipated, and numerous challenges have solutions that are within our control." Consequently, he decided to pause the plan, announced last September, to separate the Kraft and Heinz businesses. Implementing this plan would have effectively reversed the merger of the two companies, which was orchestrated by Warren Buffett in 2015. Berkshire Hathaway is the largest shareholder of The Kraft Heinz Company, holding a 27.5% stake valued at approximately $8.1 billion. In a statement released to the media, Berkshire Hathaway CEO Greg Abel voiced his support for the adjustment: "We support the decision by CEO Steve Cahillane and the Kraft Heinz board to pause the previously announced separation plan under the new management team. This allows management to focus on enhancing the company's competitiveness and its ability to serve customers." Warren Buffett has typically refrained from publicly criticizing the management of Berkshire's portfolio companies. However, when the spinoff plan was announced over five months ago, he unusually voiced his disapproval. In an off-the-record call with journalists, he said he was "disappointed" and did not rule out reducing or even liquidating Berkshire's stake in Kraft Heinz. "Merging them obviously wasn't a brilliant idea, but I don't think splitting them up solves the problem." Just three weeks ago, Abel filed a document with the U.S. SEC indicating plans to potentially sell up to 99.9% of Berkshire's 325.6 million shares in Kraft Heinz held as of September 30, signaling a strong possibility of a major divestment. The decision by Kraft Heinz to maintain its integrated operations may prevent that significant sale from materializing. Did Berkshire's preparatory steps for a potential sale influence Cahillane's decision to change course? This cannot be confirmed, but if it were the case, or even a deliberate pressure tactic, it would represent a significant departure from Buffett's long-standing principle of "non-interference" with the management of portfolio companies. Kraft Heinz's stock initially declined following the announcement of the paused spinoff on Wednesday morning but quickly rebounded, ending the week with a modest 0.7% gain.
Looking Ahead Berkshire Hathaway is expected to file its latest portfolio report with the SEC after the market closes on Tuesday, disclosing its holdings as of December 31 (the end of the fourth quarter). Market focus will be on:
Whether it continued to reduce its stakes in Apple and Bank of America. If it added to its new position in Google established in the third quarter. How the portfolio managed by investment manager Todd Combs, who joined JPMorgan Chase in December, will be adjusted.
According to a Berkshire announcement, Greg Abel's first annual letter to shareholders will be released at 8:00 AM ET on Saturday, February 28, alongside the company's annual report, fourth-quarter earnings, and information for the Annual Meeting of Shareholders on May 2. Berkshire Hathaway Stock Price and Financial Data (as of publication)
BRK.A stock price: $751,425.00; BRK.B stock price: $497.55; BRK.B P/E ratio (TTM): 15.91; Berkshire Hathaway market capitalization: $1.076 trillion; Cash reserves as of September 30: $381.7 billion (up 10.9% from June 30); Excluding railroad cash and payable Treasury bills: $354.3 billion (up 4.3% from June 30); No stock repurchases since May 2024.
Major Berkshire Hathaway Holdings (as of February 13, 2026)