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Berkshire Hathaway Writes Down Kraft Heinz Investment Amid Valuation Concerns

Laura Bennett
Published on 2025-08-03 20:50:00
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Berkshire Hathaway Writes Down Kraft Heinz Investment Amid Valuation Concerns
Berkshire Hathaway has acknowledged an overvaluation in its investment portfolio by recording a $3.76 billion impairment on its holdings in Kraft Heinz during the second quarter. This adjustment highlights the company's recognition that its initial valuation of Kraft Heinz was inflated and requires correction. Berkshire Hathaway owns more than 27% of Kraft Heinz shares. The write-down contributed to a 4% decline in Berkshire Hathaway's quarterly operating earnings. Despite this, the conglomerate maintains a substantial cash reserve exceeding $344 billion. Berkshire Hathaway acquired its stake in Kraft Heinz in 2013, prior to the company's merger with Kraft Foods. Since then, Kraft Heinz has shifted toward healthier product formulations, such as replacing artificial dyes with natural alternatives like turmeric and paprika in its iconic Kraft Mac and Cheese in 2016. Last month, Kraft Heinz announced a plan to eliminate synthetic dyes from all its products by 2027, with 90% already dye-free according to sales data. Prior to this announcement, some Berkshire Hathaway employees resigned from Kraft Heinz's board. Kraft Heinz, known for brands like Oscar Mayer, Kool-Aid, and Jell-O, e...

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