(That is the Warren Buffett Watch e-newsletter, information and evaluation on all issues Warren Buffett and Berkshire Hathaway. You may join right here to obtain it each Friday night in your inbox.)
Berkshire Hathaway’s new CEO likes the shock course reversal introduced this week by the brand new CEO of Kraft Heinz.
Within the meals firm’s This fall earnings launch, Steve Cahillane stated within the time since he joined the corporate 5 weeks in the past, he has “seen that the chance is bigger than anticipated and that lots of our challenges are fixable and inside our management.”
In consequence, he is determined to “pause work” on the deliberate separation of Kraft from Heinz that was introduced final September. It might have basically reversed the merger Warren Buffett helped orchestrate in 2015.
Berkshire is KHC’s largest shareholder with a 27.5% stake presently price $8.1 billion.
In a assertion given to CNBC and different information shops, Berkshire CEO Greg Abel endorsed the change. “We assist CEO Steve Cahillane and the Kraft Heinz Board of Administrators’ choice, underneath Steve’s new management, to pause work on the corporate’s beforehand deliberate separation. In consequence, administration can decide to strengthening Kraft Heinz’s potential to compete and serve clients.”
Characters on the Berkshire Hathaway firm Kraft Heinz sales space pose with a reporter on the shareholder purchasing day as a part of the Berkshire Hathaway annual assembly weekend in Omaha, Nebraska, Might 5, 2017.
Rick Wilking | Reuters
Buffett, who normally doesn’t criticize the administration of a Berkshire holding, was uncharacteristically vocal about his disapproval when plans for the break up had been made public greater than 5 months in the past.
In an off-camera telephone name with CNBC’s Becky Fast, he stated he was “dissatisfied” and did not rule out promoting some or all of Berkshire’s stake.
“It actually did not transform an excellent thought to place them collectively, however I do not suppose taking it aside will repair it.”
Simply three weeks in the past, Abel appeared to sign a pointy discount of Berkshire’s KHC place with an SEC registration for “the potential resale” for “as much as” 99.9% of the 325.6 million shares it reported holding as of September 30.
Kraft Heinz’s choice to stay intact might assist maintain these potential gross sales from changing into actuality.
Did Berkshire’s preparation for KHC share gross sales play a task in Cahillane’s reversal?
I actually do not know, but when it did, and if it was an intentional effort to stress KHC, it will be a big departure from Buffett’s long-standing hands-off coverage in relation to the businesses in Berkshire’s fairness portfolio.
Kraft Heinz shares fell when the break up reversal was introduced Wednesday morning however shortly rebounded to finish the week with a small 0.7% achieve.
Coming sights
Berkshire Hathaway is predicted to file its newest portfolio snapshot with the SEC after Tuesday’s closing bell.
It should reveal what shares it owned as of December 31, the top of its fourth quarter.
Among the many key questions:
Greg Abel speaks through the Berkshire Hathaway Annual Shareholders Assembly in Omaha, Nebraska on Might 4, 2024.
CNBC
Wanting additional forward, Greg Abel’s first annual letter to shareholders will likely be launched Saturday morning, February 28 round 8 AM ET (7AM CT), based on a Berkshire information launch.
The corporate’s annual report and a fourth quarter earnings launch will likely be out on the identical time, together with details about Berkshire’s Might 2 shareholders assembly.
BUFFETT & BERKSHIRE AROUND THE INTERNET
Some hyperlinks might require a subscription:
HIGHLIGHTS FROM CNBC’S BUFFETT ARCHIVE
Buffett and Munger’s e-book suggestions (1994)
AUDIENCE QUESTION: What had been the three finest books you learn final 12 months exterior of the funding discipline? Why do not — even one will do.
WARREN BUFFETT: I will provide you with — I will tout a e-book first that I’ve learn however that is not accessible but. However it will likely be in September.
The lady who wrote it, I consider, is within the viewers and it is Ben Graham’s biography, which will likely be accessible in September, by Janet Lowe. And I’ve learn it and I feel these of you who’re keen on investments, for certain, will take pleasure in it. She’s carried out a very good job of capturing Ben.
One of many books I loved so much was written additionally by a shareholder who shouldn’t be right here as a result of he is being sworn in, I consider as we speak or tomorrow, perhaps tomorrow, as head of the Voice of America.
And that is Geoff Cowan’s e-book, which is on “The Individuals v. Clarence Darrow.” It is the story of the Clarence Darrow trial for, basically, jury bribery in Los Angeles again round 1912, when the McNamara brothers had bombed the LA Instances.
It is a captivating e-book. Geoff uncovered a number of data that the earlier biographies of Darrow did not have. I feel you’d take pleasure in that…
CHARLIE MUNGER: Effectively, I very a lot loved Connie Bruck’s biography Grasp of the Sport, which was a biography of Steve Ross, who headed Warner and later was, what, co-chairman of Time Warner.
WARREN BUFFETT: Yeah, he is slightly greater than co-chairman. (Laughs)
CHARLIE MUNGER: Yeah, and — she’s a really insightful author and it is a very fascinating story.
I’m rereading a e-book I actually like, which is Van Doren’s biography of Benjamin Franklin, which got here out in 1952 [1938], and I might nearly forgotten how good a e-book it was. And that is accessible in paperback in every single place. We have by no means had anyone fairly like Franklin on this nation. By no means once more.
BERKSHIRE STOCK WATCH
BRK.A inventory value: $751,425.00
BRK.B inventory value: $497.55
BRK.B P/E (TTM): 15.91
Berkshire market capitalization: $1,076,049,449,409
Berkshire Money as of September 30: $381.7 billion (Up 10.9% from June 30)
Excluding Rail Money and Subtracting T-Payments Payable: $354.3 billion (Up 4.3% from June 30)
No Berkshire inventory repurchases since Might 2024.
(All figures are as of the date of publication, until in any other case indicated)
BERKSHIRE’S TOP EQUITY HOLDINGS – Feb. 13, 2026
Berkshire’s high holdings of disclosed publicly traded shares within the U.S. and Japan, by market worth, primarily based on the newest closing costs.
Holdings are as of September 30, 2025, as reported in Berkshire Hathaway’s 13F submitting on November 14, 2025, aside from:
The complete listing of holdings and present market values is on the market from CNBC.com’s Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTS
Please ship any questions or feedback concerning the e-newsletter to me at [email protected]. (Sorry, however we do not ahead questions or feedback to Buffett himself.)
Should you aren’t already subscribed to this text, you’ll be able to join right here.
Additionally, Buffett’s annual letters to shareholders are extremely advisable studying. There are collected right here on Berkshire’s web site.
— Alex Crippen, Editor, Warren Buffett Watch
