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Abel’s First Berkshire Letter Reports 30% Earnings Drop, Flags Possible Kraft Heinz Sale

Abel signals no rush to deploy Berkshire’s $373.3 billion cash reserve.

Overview

  • Operating earnings fell about 30% to $10.2 billion after write-downs on stakes in Kraft Heinz and Occidental Petroleum.
  • Year-end cash holdings reached $373.3 billion, with Abel reiterating no immediate plans for major deployment or dividends.
  • Abel indicated Berkshire could sell part or all of its roughly 325 million Kraft Heinz shares.
  • Warren Buffett remains chairman and continues to be actively involved at the company, according to Abel.
  • Abel ruled out buying another major railroad, cited wildfire litigation pressures at PacifiCorp, and detailed a new staged Q&A format for May’s shareholder meeting with key managers.