Warren Buffett’s Berkshire Hathaway took a $3.76 billion write-down on its Kraft Heinz stake, leading to a 59% drop in net income. Buffett remains cautious about market valuations, with a $344.1 billion cash stake and no stock buybacks since May 2024.

Berkshire reported a 4% decline in quarterly operating profit and lower gains from common stocks. Uncertainty about tariffs impacted consumer businesses, with Jazwares seeing a 38.5% revenue decline. Analysts view results as lackluster amid market valuation concerns.

Berkshire’s write-down for its Kraft Heinz stake was $3.76 billion after-tax, following the struggling food company’s consideration of strategic alternatives. Buffett acknowledged overpayment for the 2015 merger of Kraft Foods and H.J. Heinz. Kraft Heinz has faced challenges as shoppers opt for healthier alternatives.

Berkshire’s shares have fallen over 12% since Buffett announced his plan to step down as CEO, lagging the S&P 500 by 22 points. Vice Chairman Greg Abel will succeed him. Analysts note a decline in Berkshire’s stock premium due to Buffett’s departure and potential slowdown in the insurance sector.

Read more at Yahoo Finance: Berkshire takes $3.8 billion Kraft Heinz write-down, operating profit falls