Berkshire Hathaway’s Class A shares dropped over 3% on Monday due to a $3.8 billion write-down and decreased quarterly operating profit. The write-down is for its 27.4% stake in Kraft Heinz, reflecting a decline in investment value. Operating income fell 4% from the previous year, impacted by underwriting premiums and trade policy uncertainties. Berkshire remains cautious about market valuations amid ongoing uncertainty.

The conglomerate is still the largest shareholder of Kraft Heinz, facing challenges as consumers shift to healthier and private-label products. Berkshire’s stock has lagged behind the S&P 500 index since Buffett announced his retirement as CEO at the end of the year. Greg Abel is set to take over as CEO later in the year, following Buffett’s five-decade leadership. Charlie Munger, Buffett’s long-time partner, passed away in 2023 at 99. Berkshire’s Class B shares also fell 3.3% in afternoon trading.

Read more at Yahoo Finance: Berkshire Hathaway’s shares fall after $3.8 billion write-down, operating profit weakness