Warren Buffett: Deal has been overpaid 

Warren Buffett’s Berkshire Hathaway has recorded another multi-billion dollar impairment on its stake in food giant Kraft Heinz. The investment firm reported a $3.76 billion after-tax write-down on its roughly 27 percent holding in the ketchup and sauces maker as part of its second-quarter earnings release on Saturday.

The charge contributed to a 59 percent decline in Berkshire’s net earnings, which fell to $12.37 billion for the quarter. Operating profit also dipped 4 percent to $11.16 billion, reflecting broader challenges in its portfolio.

Kraft Heinz’s stock has been steadily declining in recent years. Buffett, who orchestrated the 2015 merger of Kraft Foods and H.J. Heinz, have admitted in 2019 that Berkshire overpaid for the deal. At the time, the conglomerate took a $3 billion impairment on its stake.

In May 2024, Kraft Heinz announced it was exploring strategic options, including a potential breakup. Berkshire subsequently withdrew its representatives from the company’s board but reiterated its commitment to the investment as a long-term holding.

Berkshire’s net earnings often experience significant swings due to fluctuations in the stock prices of its publicly traded holdings. As of June 30, its largest equity investments included American Express, Apple, Bank of America, Coca-Cola, and Chevron.

The 94-year-old Buffett has recently confirmed he will step down as Berkshire’s CEO by year-end, with longtime deputy Greg Abel (62) set to take over.

MK