Berkshire Takes $3.8-B Kraft Heinz Write-Down

Warren Buffett's Berkshire Hathaway has announced that it took a $3.76 billion write-down on its stake in Kraft Heinz during the second quarter — a clear acknowledgment that the decade-old investment has not panned out, Jonathan Stempel reported for Reuters.

Berkshire's Kraft-Heinz investment has not panned out. (Photo: Kurt Haubrich Flickr)

Berkshire also reported a 4% decline in quarterly operating profit, driven by a drop in insurance underwriting premiums. Combined with lower gains from its stock portfolio, the company’s overall net income plunged 59%.

Buffett’s conglomerate signaled it remains wary of current market valuations amid growing uncertainty around tariffs and broader economic growth.

The firm reported a near-record $344.1 billion in cash holdings and has sold more stocks than it bought for the 11th consecutive quarter. As of mid-July, Berkshire had not repurchased any of its own stock since May 2024.

Buffett, 94, has led the Omaha, Nebraska-based company since 1965, but plans to step down at the end of this year.

“Investors are getting antsy and want to see 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.”