Warren Buffett’s Berkshire Hathaway Writes Down $3.76B on Kraft Heinz Stake

[AIcash]

Berkshire Hathaway has written down $3.76 billion from the value of its stake in Kraft Heinz, admitting that what was once seen as a long-term strategic bet has turned into a decade-long disappointment, according to Reuters.

What happened:

The $3.76B write-down reflects a loss in value of the company’s investment in Kraft Heinz, which Buffett’s conglomerate originally entered into in 2015.

Berkshire also reported a 59% drop in quarterly net profit, from $30.35B to $12.37B, due in part to the write-down and lower returns from its stock portfolio.

Operating profit fell 4% to $11.16B, down from $11.6B in the same quarter last year.

Despite the losses, Berkshire’s cash reserves hit near-record levels at $344.1B.

A strategic shift:

This marks the second major write-down on Kraft Heinz. The first was in 2019 when Berkshire cut the value of its stake by $3B, with Buffett later admitting the company “overpaid” during the 2015 merger.

Berkshire has now gone 11 straight quarters selling more stocks than it buys, without repurchasing its own shares — a possible signal of more caution or a new direction.

What’s next:

In May, Berkshire said it was considering breaking up the business, a move that could reshape how the firm handles its legacy investments.

For Buffett, long known for his buy-and-hold approach, this episode is a rare public acknowledgment that not all bets age well — even when the brand is as iconic as Kraft Heinz.

Bottom line: Even Buffett gets it wrong. But staying liquid, adapting quickly, and being honest about losses — those are still winning strategies in the long run.