Swing To Trade
  • Stock
  • Politics
  • Business
  • Sports
Stock

Berkshire Hathaway posts 4% dip in Q2 operating profit, writes down Kraft Heinz stake

by admin August 2, 2025
August 2, 2025

Warren Buffett’s Berkshire Hathaway reported a 4% year-on-year decline in second-quarter operating profit on Saturday, underscoring the toll of falling insurance premiums and broader economic uncertainty.

Operating income dropped to $11.16 billion in the three months ended June, from $11.6 billion in the same period a year ago.

The Omaha-based conglomerate also disclosed a $3.8 billion writedown on its equity investment in Kraft Heinz, the struggling packaged-food maker known for brands like Heinz ketchup and Kraft macaroni and cheese.

The impairment contributed to a sharp 59% drop in net income, which fell to $12.37 billion from $30.35 billion a year earlier.

Though businesses such as railroads, energy, manufacturing, and retailing posted stronger year-on-year profits, the insurance underwriting segment—the cornerstone of Buffett’s empire—saw premiums soften, dragging overall earnings lower.

Tariff uncertainty and succession weigh on outlook

“The pace of changes in these events, including tensions from developing international trade policies and tariffs, accelerated through the first six months of 2025,” Berkshire said in its earnings report.

“Considerable uncertainty remains as to the ultimate outcome of these events.”

“It is reasonably possible there could be adverse consequences on most, if not all, of our operating businesses, as well as on our investments in equity securities, which could significantly affect our future results,” the company said.

Berkshire’s massive cash pile—long a subject of fascination for investors—slipped modestly to $344.1 billion, down from $347 billion at the end of March.

Notably, the conglomerate did not repurchase any of its own shares in the first half of the year, despite a more than 10% drop in Berkshire’s stock price from its all-time high.

The second quarter also marked a period of leadership transition.

Buffett, 94, announced in May that he will step down as CEO at the end of 2025, with Vice Chairman Greg Abel slated to succeed him.

Buffett will remain chairman of the board.

Kraft Heinz faces valuation hit as spinoff looms

The Kraft Heinz writedown highlights growing uncertainty around the company’s future.

Nearly a decade after Buffett and private-equity firm 3G Capital orchestrated the merger of Kraft and Heinz in 2015, shares of the combined entity have plummeted almost 70%.

During the same period, the S&P 500 has more than tripled.

Last month, The Wall Street Journal reported that Kraft Heinz was exploring a spinoff of a major portion of its grocery portfolio, potentially creating a new company worth as much as $20 billion.

The move, according to analysts, could help streamline operations but may also accelerate Berkshire’s exit from the investment.

Berkshire currently holds a 27% stake in Kraft Heinz but gave up its board seats in May.

TD Cowen analyst Robert Moskow noted that the planned restructuring “should slim down” Kraft Heinz’s portfolio but also warned of a potential stock overhang if Berkshire begins selling its shares.

Buffett continues to pare down financial holdings

While Berkshire remains famously long-term in its investing approach, Buffett has quietly trimmed positions across his portfolio this year, particularly in the financial sector.

Notable among them is the gradual reduction in Bank of America shares—one of Berkshire’s largest holdings since 2011.

The sales have drawn attention among analysts and investors, given Buffett’s oft-quoted philosophy that his “favourite holding period is forever.”

The recent pattern, however, suggests a cautious repositioning in light of shifting market conditions and Buffett’s advancing age.

The post Berkshire Hathaway posts 4% dip in Q2 operating profit, writes down Kraft Heinz stake appeared first on Invezz

previous post
Bank of America picks 5 stocks with post earnings rally potential
next post
Retail investors shift focus to Europe as US valuations stretch

Related Posts

Tilray Brands stock has crashed—but a bullish pattern...

February 3, 2026

PayPal stock: 3 things it needs from the...

February 3, 2026

Micron stock sinks after big rally: why profit-taking...

February 3, 2026

Google earnings preview: record profit expected, but 3...

February 3, 2026

Why Nvidia stock is crashing over 3% today

February 3, 2026

Commodity wrap: gold, silver, oil, and copper fall...

February 2, 2026

Why is Tesla stock crashing in early trading...

February 2, 2026

AMD stock surges over 5% ahead of Q4...

February 2, 2026

Micron stock soars over 4% after major capacity...

February 2, 2026

Why Oracle stock is up around 3% today

February 2, 2026
Join The Exclusive Subscription Today And Get Premium Articles For Free

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    Recent Posts

    • Tilray Brands stock has crashed—but a bullish pattern is emerging

      February 3, 2026
    • PayPal stock: 3 things it needs from the new CEO to recover

      February 3, 2026
    • Micron stock sinks after big rally: why profit-taking is hitting now

      February 3, 2026
    • Google earnings preview: record profit expected, but 3 red flags remain

      February 3, 2026
    • Why Nvidia stock is crashing over 3% today

      February 3, 2026
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2026 SwingToTrade.com All Rights Reserved.

    Swing To Trade
    • Stock
    • Politics
    • Business
    • Sports