Berkshire Hathaway Q2 Operating Profit Drops 4% on Kraft Heinz $3.8B Writedown

Berkshire Hathaway reported a nearly 4% decline in its quarterly operating profit, primarily due to challenges in its insurance underwriting sector and a significant $3.8 billion writedown on its investment in Kraft Heinz. This marks the conglomerate's first consecutive quarterly profit drop since 2020, with operating earnings falling slightly to approximately $11.16 billion. Despite the decline, Berkshire's operating earnings surpassed analyst expectations. The decrease in net income was more pronounced, dropping about 59% compared to the previous year, influenced by smaller paper investment gains. Berkshire continues to face economic uncertainties tied to President Donald Trump's tariff policies, which have affected revenue in some of its consumer brands. Warren Buffett acknowledged past overestimations in the Kraft Heinz investment, and the company is preparing for leadership transition as Buffett plans to step down later this year.