Despite $3.8-B Kraft Heinz Write-Down, Berkshire Still Has $344-B To Spare

Berkshire Hathaway’s second-quarter earnings report has offered some important insights: Operating earnings were stronger than they first appeared due to one-time, noncash currency losses.

The Kraft Heinz writedown may signal that Berkshire’s stake in Occidental Petroleum could be next. (Photo: Mike Mozart Flickr)

Meanwhile, the company neither repurchased its own stock nor made significant new stock purchases, Andrew Bary reported for Barron’s Daily.

Berkshire took a $3.8 billion noncash write-down on its more than 25% stake in Kraft Heinz, adjusting the stock’s carrying value to $8.4 billion to match market prices.

Berkshire did not buy back any of its shares during the second quarter or in the first three weeks of July, based on a Barron’s analysis of its latest 10-Q filing. The last buyback was in May 2024.

Despite the writedown, Berkshire ended the quarter with about $344 billion in cash and equivalents. Adjusted for the timing of Treasury bill purchases, that’s roughly $10 billion more than it held on March 31.

The large cash pile gives Berkshire ample firepower for a possible cash bid for CSX railroad.

The company was also a net seller of stocks in Q2, buying about $4 billion in equities and selling $7 billion—indicating Warren Buffett remains cautious about current valuations.

This follows $1.5 billion in net stock sales during Q1.

The Kraft Heinz writedown may signal that Berkshire’s stake in Occidental Petroleum could be next. Berkshire currently carries its Oxy investment at $16.5 billion—about $4 billion above its market value. The conglomerate owns more than 25% of the energy company.