OMAHA, Neb. – This month marks a potential turning point for Berkshire Hathaway under its new CEO, as Warren Buffett’s successor contemplates a major strategic decision.

On Tuesday, Kraft Heinz informed investors that Berkshire Hathaway is considering selling its substantial holding of 325 million shares in the well-known food company, a venture Buffett was instrumental in forming back in 2015. This development was revealed in a regulatory filing.

The merger of Kraft and Heinz was orchestrated by Buffett alongside Brazilian investment firm 3G Capital, leveraging their ownership of Heinz and belief in the brands’ potential. However, Greg Abel, Buffett’s successor, may be charting a different path.

Over time, Buffett realized that the competitive edge of Kraft Heinz’s brands wasn’t as robust as initially presumed, with consumers increasingly opting for store brands and moving away from processed foods. Last summer, Berkshire recorded a $3.76 billion writedown on its investment in Kraft Heinz. Buffett expressed disappointment last fall over the company’s decision to split, leading to the resignation of Berkshire’s two representatives from Kraft’s board earlier this year.

Historically, Buffett rarely divested from acquisitions during his extensive tenure at Berkshire, even when he grew pessimistic about their future. On Tuesday, Berkshire did not comment on the Kraft Heinz filing, which noted that its largest shareholder “may offer to sell, from time to time, 325,442,152 shares.” Following this announcement, Kraft Heinz shares dropped nearly 4% to $22.85.

There’s no sign Berkshire has started selling yet, but CFRA Research analyst Cathy Seifert wonders if this could be just the beginning of a comprehensive review of Berkshire’s varied holdings. In addition to its massive stock portfolio worth over $300 billion, Berkshire owns an assortment of insurers including Geico, several utilities, BNSF railroad and an eclectic mix of manufacturing and retail companies.

“My sense is that Greg Abel’s leadership style may be a departure from Buffett’s, and this sale, if completed, would represent a shift in corporate mindset,” Seifert said. “Berkshire under Buffett typically only made acquisitions- not divestitures. It’s not inconceivable, in our view, that Abel may likely assess every Berkshire subsidiary and decide to jettison those that do not meet his internal hurdles.“

Of course Abel already knows many of Berkshire’s companies well because he has been managing all of the non-insurance companies since 2018. But he only became CEO on Jan. 1. Buffett remains chairman, but investors are watching closely for any changes Abel might make at the venerable conglomerate.

Investor Chris Ballard, who is managing director at Check Capital, said “selling Kraft is probably the most low-hanging fruit for Greg. We personally wouldn’t be sad to see the holding go.”

But of course it would be bard for Berkshire to unload all of its shares on the public market because it is such a large stake, so Ballard said he wonders if there could be a large prospective buyer in the wings.

But Buffett said last fall that Berkshire wouldn’t accept a block bid for its shares unless the same offer was made to all Kraft Heinz shareholders.