So, the torch has been passed. On Saturday, Berkshire Hathaway Inc. (BRK-A) (BRK-B) new CEO Gregory E. Abel shared his first annual letter to shareholders, and his central message was one of continuity: don't panic, the culture is staying intact. The job, he wrote, is to treat your shareholders' money as a sacred trust, not a trophy to be shown off, and to make decisions with the same old-fashioned virtues of integrity, patience, and thinking in decades, not quarters.
It's a philosophy being put to the test in real-time with one of Berkshire's most prominent—and recently, most problematic—investments: Kraft Heinz (KHC). Abel has voiced support for the food maker's new CEO, Steve Cahillane, who has been on the job for all of five weeks and has already hit the brakes. The company is halting work on a previously announced plan to split itself up, a move announced last September. Instead, the new focus is on the hard, unglamorous work of fixing the business.
In his letter, Abel laid out the operating playbook that won't change: decentralized leadership, a conservative balance sheet, and risk controls that start with the massive insurance operations. That long-horizon mindset is getting a public stress test at Kraft Heinz, where fourth-quarter adjusted earnings per share fell 20.2% to 67 cents. The company is now outlining a $600 million effort to restart growth.
Abel's Vision: A New Era For Berkshire
Abel framed Berkshire's staggering financial heft as its ultimate competitive weapon. He pointed to cash and U.S. Treasury holdings above $370 billion and a continued preference to use debt sparingly, if at all. He also made it clear that the buck stops with him on risk, writing that the CEO carries the top risk role and that insurance discipline and walking away from mispriced risks are non-negotiable.
The other half of the formula is operational execution. Abel highlighted how Berkshire's decentralized model is designed to let teams respond quickly under pressure while never compromising on safety or service. He cited the example of Precision Castparts, which redistributed production after a fire in February 2025 without causing customer production lines to stop.
When it comes to the stock portfolio, Abel said the approach remains concentrated and built to last for decades. But he also acknowledged one very high-profile exception. He wrote plainly that the Kraft Heinz investment has been disappointing and that the returns have come in below what Berkshire considers acceptable. That backdrop explains why the current reset at Kraft Heinz is about running the business better, not rearranging the corporate furniture. The company posted fourth-quarter sales of $6.354 billion, just shy of the Wall Street estimate of $6.376 billion, with net sales down 3.4% and organic net sales down 4.2%.
Can Kraft Heinz Recover From This Setback?
So, what's the recovery plan? Cahillane's strategy involves spending across marketing, sales, research and development, and product upgrades, with a focus on the so-called Taste Elevation portfolio and turning around the U.S. business. The regional sales mix tells part of the story: North America revenue fell 5.4% to $4.70 billion, while International Developed Markets rose 1.8% to $930 million and Emerging Markets increased 4.3% to $724 million.
Kraft Heinz is keeping its regular dividend in place, declaring a quarterly payout of 40 cents per share payable on March 27, 2026, to shareholders of record on March 6, 2026. Looking ahead to fiscal 2026, management guided to adjusted EPS between $1.98 and $2.10. They project organic net sales will fall between 1.5% and 3.5%, which includes an estimated 100-basis-point hit from pressure on SNAP benefits.
The strategic debate around Kraft Heinz has been sharpened by Berkshire's large ownership stake—about 27.5% of the company, currently worth roughly $8.1 billion. That position has shrunk dramatically in value since the 2015 merger, when the shares were valued at $73.73. The stake was said to have dwindled from about $23.99 billion to roughly $7.89 billion as Kraft Heinz shares recently hit a 52-week low of $22.35.
Warren Buffett himself weighed in on the earlier breakup concept, telling CNBC he was "disappointed," and adding, "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." Kraft Heinz board chair John T. Cahill backed the new pivot, saying the pause creates "a clear glidepath back to profitable growth."
