<div id="readability-page-1"><div><div><p><strong>Warren Buffett</strong>‘s <strong>Berkshire Hathaway Inc.</strong> <span>BRK</span> has reported a $3.8 billion impairment on its stake in <strong>Kraft Heinz Co.</strong> <span>KHC</span>, marking a significant setback for the billionaire investor.</p><p><strong>What Happened</strong>: Berkshire Hathaway has reduced the carrying value of its Kraft Heinz investment to $8.4 billion, a significant drop from over $17 billion at the end of 2017. </p><p>This marks a rare disappointment for Buffett, who played a key role in the merger of Kraft and Heinz about a decade ago, reports Bloomberg. </p><p>The stock of the packaged foods giant has plummeted 62% since the merger, while the S&amp;P 500 has surged 202%. </p><p>Berkshire’s Kraft Heinz stake is now marked at its fair value as of the end of June. The writedown was “overdue,” <strong>Kyle Sanders</strong>, an analyst at Edward Jones, told the outlet. </p><p>Also Read: Berkshire Hathaway Warns of ‘Adverse Consequences on Most, If Not All, Operating Businesses’ as Q2 Results Reflect Mounting Global Pressures</p><p>Kraft Heinz is currently considering a spinoff of part of its business as it grapples with challenges such as inflation and a shift in consumer preference towards healthier alternatives. </p><div><div><div><p>Trending Investment Opportunities</p></div></div></div><p>Last month, the company reported a decline in sales that wasn’t as bad as analysts had predicted, thanks in part to higher prices.</p><p><strong>Why It Matters</strong>: The recent developments indicate a shift in Berkshire’s relationship with Kraft Heinz. In May, Kraft Heinz announced that Berkshire gave up seats on the packaged foods company's board. </p><p>The writedown, disclosed Saturday in a regulatory filing, was driven in part by the sustained decline in fair value. </p><p>This could potentially signal a strategic move by Berkshire to distance itself from the underperforming packaged foods company.</p><p>Read Next</p><p>Warren Buffett Skips Big Banks Like JPMorgan and Wells Fargo, Bets $459 Million On This One Asset</p><p>Image: Shutterstock</p></div></div></div>

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<p>Berkshire Hathaway Inc. has reported a $3.8 billion impairment on its stake in Kraft Heinz Co., reducing its investment value to $8.4 billion from over $17 billion in 2017. This significant loss reflects a 62% decline in Kraft Heinz's stock since its merger, contrasting with a 202% rise in the S&P 500. The writedown indicates a shift in Berkshire's relationship with Kraft Heinz, especially after Berkshire relinquished board seats. Kraft Heinz is also exploring a business spinoff amid challenges like inflation and changing consumer preferences.</p>

- Berkshire Hathaway Inc. reported a $3.8 billion impairment on its investment in Kraft Heinz Co., reducing its carrying value to $8.4 billion.  
- This decline reflects a significant drop from over $17 billion in 2017, coinciding with a 62% decrease in Kraft Heinz's stock since its merger, while the S&P 500 rose 202%.  
- The writedown suggests a strategic shift in Berkshire's relationship with Kraft Heinz, as the company faces challenges like inflation and changing consumer preferences.  

Berkshire Hathaway Faces $3.8 Billion Loss Tied to Kraft Heinz Stake