Legendary investor Warren Buffett’s recent remarks on Kraft Heinz’s (NASDAQ: KHC) corporate split have sparked speculation about his long-term commitment to the food giant.
The billionaire chief executive of Berkshire Hathaway, who once championed the merger between Kraft and Heinz, expressed disappointment as the company disclosed plans of a split last week.
That has both investors and analysts wondering if the “Oracle of Omaha” is considering a full exit from KHC shares.
Kraft Heinz stock has already underperformed the broader market in 2025, and a Buffet divestment could accelerate the decline in the months ahead.
Buffett could trigger a sharp crash in Kraft Heinz stock
Buffett’s influence on KHC stock is not just symbolic – it’s structural.
His conglomerate, Berkshire Hathaway, is currently the largest shareholder with a 27.5% stake in the packaged foods giant.
In total, Berkshire currently owns some 330 million shares of Kraft Heinz, valued at roughly $11 billion.
Investors have already shown sensitivity to Buffett’s sentiment.
Kraft Heinz stock plunged nearly 8.0% when he voiced disappointment in the announced split – underscoring how closely they track the billionaire’s cues.
It’s reasonable to assume, therefore, that full divestiture would signal loss of long-term conviction, potentially triggering panic selling from retail and institutional holders alike.
Compounding the risk is a liquidity shock. KHC has a daily trading volume of up to 7 million.
Unloading 330 million shares – even gradually – would overwhelm the order book and create a persistent overhang, depressing prices for weeks or longer.
How Buffett’s previous divestments have shaken markets
Buffett’s exits have historically rattled markets, especially when they signal a strategic pivot.
When his conglomerate, Berkshire Hathaway, trimmed its IBM stake, shares of the legacy IT firm fell nearly 10% over several weeks as investors recalibrated their expectations.
Then, during the COVID crisis, Buffett’s abrupt exit from airline stocks triggered as much as 20% declines, amplifying sector-wide panic. In fact, even quieter exits have left a mark.
When 3G Capital, Buffett’s original partner in the Kraft Heinz deal, reduced its stake, KHC stock dropped some 8%, despite the move being less publicised.
These precedents suggest that Buffett’s exit from Kraft Heinz shares would likely be interpreted as a red flag, regardless of execution style.
Estimating the potential decline in KHC shares
Based on the aforementioned historical reactions, market structure, and sentiment dynamics, it is fair to expect an immediate decline of up to 15% in Kraft Heinz shares if Buffett were to sell his entire stake in the Nasdaq-listed firm.
If no strategic buyers emerge, KHC stock could face extended pressure that pushes the overall decline to over 20% over several weeks.
And in the worst-case scenario, compounded by poor earnings or macro headwinds, a total decline of more than 30% is likely.
Note that Warren Buffett has already confirmed he’s not willing to accept a block bid unless other shareholders receive the same offer – limiting the potential for a discreet exit and increasing the odds of broader market disruption.
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