Warren Buffett's Berkshire Hathaway once held a massive silver position that would be worth billions today, highlighting one of the legendary investor's rare cases of selling too early. The company purchased 129.7 million ounces of silver in 1997 but sold the entire position within a decade at an unspecified profit.

The Scale of the Missed Opportunity

With silver currently trading at $100 an ounce, Berkshire's former silver holding would now be valued at approximately $13 billion. The precious metal has experienced remarkable price appreciation, tripling over the past year and posting a 40% gain in 2026 alone.

Buffett's Silver Strategy and Market Impact

Buffett had followed the silver market for decades before making the 1997 purchase. In February 1998, Berkshire announced it had accumulated the 129.7 million ounces over a six-month period, representing approximately 25% of annual mined supply at the time. The company stated it had no intention of purchasing additional silver.

The massive acquisition attracted significant attention from both the silver market and regulators, who expressed concern that Buffett might be attempting to replicate the Hunt brothers' strategy from the 1970s. The Hunt brothers had successfully driven silver prices to $50 an ounce before the market collapsed.

Historical Context and Investment Philosophy

Buffett's interest in silver dated back to the early 1960s, when the U.S. government effectively set the silver price at around $1.29 an ounce. This was the value of silver in pre-1965 U.S. coins, including dimes, quarters, and half dollars, which contained 90% silver. A quarter from that era contained roughly 0.18 ounce of silver.

Buffett recognized that the government was artificially suppressing silver prices while releasing government stockpiles to meet strong industrial demand. His analysis proved correct when silver was demonetized in 1965 and prices subsequently rose.

Supply-Demand Fundamentals

The investment rationale for Berkshire's 1997 silver purchase mirrors current market conditions. As stated in the company's 1998 press release: "widely-published reports have shown that bullion inventories have fallen very materially, because of an excess of user-demand over mine production and reclamation."

The Silver Institute has estimated a 2025 silver supply deficit of more than 100 million ounces, compared to the deficit of about 150 million ounces in 1997.

Pattern of Early Exits

The silver investment represents part of a broader pattern where Buffett makes astute investment decisions but exits positions prematurely. Similar examples include selling most of Berkshire's Apple stake in 2024 and 2025, and disposing of bank stocks in 2020 and 2021 at prices below current levels.

Reflecting on the silver investment at Berkshire's 2006 annual meeting, Buffett acknowledged: "I bought it very early. I sold it very early. Other than that, everything I did was perfect. I was the silver king there for a while. We did make a few dollars on it. But we're not good at the game of, when it gets into the speculative area, figuring out how far a speculative boom will go."

Berkshire Hathaway has signaled it may divest its substantial stake in Kraft Heinz, marking what could be the first major strategic move under new CEO Greg Abel's leadership. The development emerged through a regulatory filing where Kraft Heinz disclosed that its largest shareholder may sell shares, sending the food company's stock down nearly 4% to $22.85.

Potential Divestiture Details

The filing reveals Berkshire Hathaway's intention to potentially sell its complete holding in the food giant. Key aspects of the potential transaction include:

Strategic Shift Under New Leadership

The potential sale represents a notable departure from Berkshire's traditional investment approach. Greg Abel, who became CEO on January 1 while Buffett remains chairman, appears to be charting a different course from his predecessor's acquisition-focused strategy.

CFRA Research analyst Cathy Seifert observed that Abel's leadership style may differ significantly from Buffett's approach. "Berkshire under Buffett typically only made acquisitions - not divestitures," she noted, suggesting this could signal broader portfolio reviews across Berkshire's diverse holdings.

Investment Background and Challenges

Berkshire's involvement with Kraft Heinz dates back to 2015, when Buffett partnered with Brazilian investment firm 3G Capital to orchestrate the merger of Kraft and Heinz. However, the investment has faced significant challenges:

• Berkshire recorded a $3.76 billion writedown on its Kraft Heinz stake
• Two Berkshire representatives resigned from the Kraft board
• Buffett expressed disappointment with the company's plan to split into two entities
• Consumer preferences shifted toward store brands and away from processed foods

Market Analysis and Implications

Investment professionals view the potential Kraft Heinz divestiture as a logical strategic move. Chris Ballard, managing director at Check Capital, characterized "selling Kraft as probably the most low-hanging fruit for Greg."

The challenge lies in executing such a large transaction, given Berkshire's substantial stake size. However, Buffett previously stated that Berkshire wouldn't accept a block bid unless the same offer was extended to all Kraft Heinz shareholders.

Broader Portfolio Considerations

Berkshire Hathaway's extensive holdings include a stock portfolio worth over $300 billion, plus diverse operating companies spanning insurance (including Geico), utilities, BNSF railroad, and various manufacturing and retail businesses. Abel, who has managed all non-insurance companies since 2018, now has full authority to assess these holdings as CEO.

The Kraft Heinz situation may serve as an indicator of Abel's willingness to divest underperforming assets, potentially marking a new era in Berkshire's investment philosophy focused on optimizing rather than simply accumulating holdings.