Warren Buffett's successor speaks: Berkshire Hathaway will not currently adjust its stake in (KHC.US) Kraft Heinz, supporting the company's shift toward product and pricing investments.

Bloomberg News has learned that Berkshire Hathaway (BRK.A.US, BRK.B.US) CEO Abel has stated that the company currently has no immediate plans to adjust its holdings after Kraft Heinz (KHC.US) paused its spin-off plans.

Previously, Kraft Heinz CEO Steve Cahillane announced last month that the company would suspend its plan to split into two separate companies. Instead, the company will invest about $600 million in developing new products and lowering prices on some items to boost sales growth. The decision surprised the market at the time and added a new twist to Kraft Heinz’s strategic adjustments in recent years.

The story of Kraft Heinz dates back about ten years. At that time, under the leadership of Berkshire Hathaway’s former CEO Warren Buffett, Kraft Foods completed a merger with Heinz valued at approximately $46 billion. However, this deal did not deliver the expected returns for investors, and since the merger, the company’s stock price has continued to decline, significantly underperforming the market over the long term.

In the context of Kraft Heinz’s previous discussions about splitting its business, a registration document filed by Berkshire Hathaway in January showed that the company was seeking to sell its remaining approximately 28% stake in Kraft Heinz. The market widely interpreted this as Berkshire Hathaway potentially gradually exiting what was once considered a classic consumer goods investment.

However, as Kraft Heinz management changed its strategic direction, Berkshire Hathaway’s stance has also become more cautious. Abel, in an interview, said that Cahillane’s latest decision is “absolutely the right move.”

Abel explained that Berkshire Hathaway’s previous registration filings were mainly to “be prepared” so that if the company decided to sell its stake in the future, it could do so smoothly. But this does not mean the company will take immediate action.

“We filed the registration documents just to ensure that if we decide to sell in the future, we are ready. But that doesn’t mean we will take any immediate action now,” Abel said.

Analysts believe that Kraft Heinz’s strategy of increasing product innovation and adjusting prices indicates the company is trying to rekindle growth in the highly competitive food industry. For long-term shareholders like Berkshire Hathaway, maintaining their stake in the short term also means they are observing whether the company’s strategic adjustments can lead to improved performance.