KHC Is Low-Hanging Fruit for Greg Abel: Which Warren Buffett Stock Will He Sell Next?

Greg Abel, who took over as Berkshire Hathaway’s (BRK.A) (BRK.B) CEO earlier this year could make its first major move by selling Kraft Heinz (KHC) shares. The conglomerate has registered to sell its 27.5% stake in the company, whose stock has underperformed terribly since the 2015 merger. For context, when Kraft Heinz started trading in 2015 as a merged entity, it opened at $71—over three times the current price levels.

While the registration does not necessarily mean that Berkshire would sell KHC shares—either in full or in part—it begins the formal process. Kraft Heinz is among the top equity holdings at Berkshire Hathaway, and Warren Buffett counts it among his rare mistakes. The “Oracle of Omaha” previously admitted that he overpaid for Kraft during the merger with Heinz. It was a costly mistake, though, and Berkshire wrote off that investment by $3.76 billion last year and $3 billion in 2019.

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KHC Was a Low-Hanging Fruit for Abel

I would argue that KHC was a relatively low-hanging fruit for Abel, as the company didn't make any money for the conglomerate in over a decade. Moreover, both Buffett and Abel were “disappointed” with the split that KHC announced last year. The company’s outlook does not look much rosier as it continues to battle increased competition amid changing consumer preferences.

Other Underperforming Buffett Stocks

To be sure, Kraft Heinz is not the only underperformer in Berkshire’s sprawling portfolio of publicly traded companies. There are short-term underperformers like Apple (AAPL) and Amazon (AMZN), which have trailed markets over the last year. However, Berkshire has been selling Apple shares, and it might soon lose the position as the conglomerate’s biggest holding.

Coca-Cola (KO) is meanwhile a long-term underperformer, and the stock is up just about 67% over the last 10 years, which is well short of the average S&P 500 Index ($SPX) constituent. Like Kraft Heinz, the beverage giant is facing some structural challenges with changes in the preferences of consumers who are increasingly opting for healthier alternatives. To be sure, Coca-Cola also read the writing on the wall and has launched several healthier options in its portfolio. However, carbonated drinks still account for the lion’s share of its revenues.

Selling KO would be tricky for Abel, as it’s been a core part of Berkshire’s portfolio. Buffett first invested in the company in 1987 and hasn’t sold any shares since then. The nonagenarian has been a fan of the company as well as its flagship product, which he famously sips at the company’s annual meetings.

Which Buffett Stocks Could Abel Sell Next?

Meanwhile, I would like to see Abel exit the smaller holdings in Berkshire’s portfolio, particularly those valued below $1 billion. These holdings don’t move the needle for the $1 trillion behemoth that Berkshire is, and I believe Abel should either exit them altogether or build the stakes further.

That said, more than selling shares, Abel might need to worry about the burgeoning cash pile. The conglomerate has been a net seller of stocks (more stock sells than buys) for 12 straight quarters and hasn’t repurchased any shares since May 2024. It has been generating operating cash flows all this while and collecting billions of dollars in dividends from investee companies, which catapulted its cash pile to a record $382 billion at the end of Q3 2025. I won’t be surprised if Berkshire reports a cash holding of $400 billion—give or take a few billion—for Q4, given the trend over the last few quarters.

What Stocks Could Abel Buy and Reverse Buffett’s Mistake?

If Abel goes ahead and exits Kraft Heinz, he would help reverse one of Buffett’s admitted mistakes. Apart from admitting to a mistake in KHC, Buffett regrets not buying Amazon and Alphabet (GOOG) (GOOGL) early. The investing great has acknowledged that he was wrong about IBM (IBM) and airlines and said that he sold Disney (DIS) and Apple shares early. He also admitted to overpaying for Precision Castparts.

Meanwhile, Berkshire did load up on Alphabet shares in Q3 2025. I would expect Berkshire to take a more constructive view of tech companies under Abel. One shouldn’t expect Berkshire to go out and start buying bitcoins (BTCUSD) or names like Tesla (TSLA) and Palantir (PLTR) under Abel, but the company might not be as averse to investing in tech stocks as it was under Buffett.

Overall, I believe the intent to sell KHC is a good beginning, and we should see more such decisions under Abel. While the upcoming Q4 2025 13F would still have Buffett's imprint, in the coming quarters, we'll get to learn more about Abel's investment strategy as well.

On the date of publication, Mohit Oberoi had a position in: BRK.B , AAPL , AMZN , GOOG , DIS , TSLA . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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