Berkshire takes $3.8b Kraft Heinz write-down

Warren Buffett's Berkshire Hathaway said on Saturday it took a $3.76 billion write-down on its stake in Kraft Heinz during the second quarter, an acknowledgment the decade-old investment hasn't worked out.

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Berkshire also reported a 4% decline in quarterly operating profit as insurance underwriting premiums fell. The write-down and lower gains from common stocks caused a 59% drop in overall net income.

Buffett's conglomerate signalled it remains cautious about market valuations, amid uncertainty about tariffs and growth in the broader economy.

It reported a near-record $344.1 billion cash stake, and sold more stocks than it bought for an 11th straight quarter. As of mid-July, Berkshire hadn't repurchased any of its own stock since May 2024.

Buffett, 94, has led Omaha, Nebraska-based Berkshire since 1965, though he plans to step down at year-end.

"Investors are getting antsy and want to seek activity, and nothing is happening," said Kyle Sanders, an analyst at Edward Jones. "Buffett definitely views the market as overvalued, and will sit back and wait for something to come to him."

Uncertainty about trade policies, including tariffs, has become a headwind as delayed orders and shipments led to declining revenue at most of Berkshire’s consumer businesses.

Jazwares, which makes the popular Squishmallows plush toys, saw revenue fall 38.58 in the year’s first half.

Analysts viewed overall results as lackluster.