Warren Buffett’s Berkshire Hathaway has taken a $3.76 billion write-down on its stake in Kraft Heinz, marking the second such move by the conglomerate since 2019. The write-down comes as the struggling food company announces it is considering strategic alternatives, which could include a breakup.
Berkshire reported a 4% decline in quarterly operating profit, with insurance underwriting premiums falling due to declining orders and shipments led to revenue at most of Berkshire’s consumer businesses. The conglomerate also sold more stocks than it bought for an 11th straight quarter, further eroding the value of its stake in Kraft Heinz.
Buffett views the write-down as a necessary step, acknowledging that Berkshire overpaid for Kraft Foods and H.J. Heinz in 2015. The move comes amid uncertainty about tariffs and growth in the broader economy, with analysts warning that the market may not embrace the combination of mediocre results, lack of stock buybacks, and Berkshire’s recent share underperformance amid a management transition.
Shares of Berkshire have fallen more than 12% since Buffett announced his plans to step down as CEO at year-end, leading analysts to warn that the premium embedded in its stock price due to Buffett’s presence has eroded.
Source: https://www.reuters.com/sustainability/boards-policy-regulation/berkshire-takes-38-billion-kraft-heinz-write-down-operating-profit-falls-2025-08-02