Berkshire Hathaway Faces $3.76B Kraft Heinz Write-Down, Cash Pile Nears Record

Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) reported a $3.76 billion write-down on its 27.4% stake in Kraft Heinz (NASDAQ:KHC) during Q2 2025, reflecting continued struggles at the food giant. The after-tax charge, stemming from Kraft Heinz’s exploration of strategic alternatives, follows a prior $3 billion write-down in 2019 and highlights long-term challenges from shifting consumer trends toward healthier and private-label brands.

Quarterly operating profit fell 4% to $11.16 billion as insurance underwriting premiums declined, while net income plunged 59% to $12.37 billion due to lower equity gains and currency losses. Revenue slipped 1% to $92.52 billion. Despite weaker results, Berkshire’s cash reserves hit $344.1 billion, near record levels, as it sold more stocks than it bought for the 11th consecutive quarter and halted share repurchases since May 2024.

Buffett, 94, who has led the Omaha-based conglomerate since 1965, plans to step down as CEO at year-end, with Vice Chairman Greg Abel set to succeed him. Shares have dropped over 12% since May, underperforming the S&P 500 by 22 percentage points, as investor sentiment cools amid management transition and limited new investments.

Berkshire’s insurance arm, including Geico, saw mixed results—Geico’s profit rose 2% but continues losing market share to State Farm and Progressive. BNSF railroad profits improved 19% on lower fuel costs, while Berkshire Hathaway Energy posted a 7% gain. Analysts note possible headwinds from tariffs and auto parts costs, while speculation grows over potential acquisitions, such as CSX (NASDAQ:CSX), following Union Pacific’s (NYSE:UNP) purchase of Norfolk Southern (NYSE:NSC).

Buffett’s disciplined approach leaves Berkshire positioned with massive liquidity but facing pressure to deploy capital amid an uncertain economy and high market valuations.