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8h ago

Berkshire Hathaway Q2 Operating Profit Falls 4%, Records $3.8 Billion Kraft Heinz Write-Down

Management warned that U.S. tariffs threaten its businesses following weaker insurance underwriting alongside significant investment losses.

FILE PHOTO: People watch as Berkshire Hathaway chairman Warren Buffett is seen on a screen speaking at the Berkshire Hathaway Inc annual shareholders' meeting, in Omaha, Nebraska, U.S., May 3, 2025. REUTERS/Brendan McDermid/File Photo
FILE - Berkshire Hathaway Chairman and CEO Warren Buffett speaks during an interview with Liz Claman on Fox Business Network's "Countdown to the Closing Bell," May 7, 2018, in Omaha, Neb. (AP Photo/Nati Harnik, File)
Berkshire Hathaway Chairman Warren Buffett attends the Berkshire Hathaway Inc annual shareholders' meeting in Omaha, Nebraska, U.S., May 3, 2024. REUTERS/Scott Morgan/File Photo
Berkshire Hathaway Chairman Warren Buffett attends the Berkshire Hathaway Inc annual shareholders' meeting in Omaha, Nebraska, on May 3, 2024.

Overview

  • Berkshire’s operating earnings slipped 4% year-over-year to $11.16 billion, driven by softer insurance underwriting profits.
  • Net income tumbled 59% to $12.37 billion after the conglomerate took a $3.8 billion impairment on its Kraft Heinz stake.
  • The firm was a net seller of equities for an 11th straight quarter, disposing $4.5 billion in stocks and not repurchasing any shares.
  • Cash and cash equivalents stood at $344.1 billion, near record levels that reflect Buffett’s cautious capital allocation in light of elevated market valuations.
  • Management cautioned that U.S. tariffs and trade-policy uncertainty could hurt its operating units and equity investments ahead of Warren Buffett’s year-end handover to Greg Abel.