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Real-time News
On August 2nd, Berkshire Hathaway took a $3.8 billion write-down on its Kraft Heinz investment, signaling that Buffetts iconic 2015 consumer goods deal is facing significant challenges. This marks Berkshires second impairment of the business, following a $3 billion write-down in 2019. As of the end of June, Berkshire lowered the investments carrying value to $8.4 billion. The investment was a rare disappointment for Buffett. While the investment remains profitable, the packaged food giants stock price has fallen 62% since the 2015 merger of Kraft and Heinz. Over the same period, the S&P 500 has risen 202%. Kraft Heinz is currently considering spinning off some of its businesses to address challenges such as inflation suppressing consumer demand and the impact of the healthy eating trend.On August 2nd, Warren Buffetts Berkshire Hathaway (BRK.AN, BRK.BN) announced that its consumer products business has been impacted by US President Trumps trade policies, which have increased tariffs on imported goods. The conglomerates consumer products division (which includes brands such as Fruit of the Loom, Jazwares, and Brooks Sports) reported a 5.1% year-over-year revenue decline to $189 million in the second quarter, primarily due to declining sales, tariff impacts, and business restructuring. Berkshire cited tariffs as delays in order deliveries. However, the company noted that Brooks, the athletic shoe brand, bucked the trend with an 18.4% revenue increase in the quarter, driven by increased sales. Because Berkshires businesses span multiple economic sectors, its performance is seen as a microcosm of the US economy, attracting considerable investor attention. At Berkshires annual meeting in May, Buffett strongly supported free trade, stating that tariffs should not be used as a "weapon" and emphasizing that "balanced trade is good for the world."On August 2nd, Berkshire Hathaway (BRK.AN, BRK.BN) reported that its cash reserves fell 1% to $344 billion in the three months ending in June, marking the first decline in three years. Previously, the cash reserves had repeatedly hit record highs as Buffett struggled to find investment opportunities. In the second quarter, Buffett became more cautious about the stock market, selling approximately $3 billion in net stocks and even suspending Berkshires stock buybacks for four consecutive quarters—despite a 12% drop in the stock price since the CEO handover announcement in May.Berkshire Hathaway A (BRK.AN): As of June 30, 2025, the fair value of the companys top five holdings accounted for a total of 67%.Berkshire Hathaway A (BRK.AN)s top five holdings at the end of the second quarter were American Express (AXP.N), Apple (AAPL.O), Bank of America (BAC.N), Coca-Cola (KO.N) and Chevron (CVX.N).
