Berkshire Hathaway reports Q2 operating earnings $11.16B vs. $11.6B last year

Berkshire took an impairment on its investment in Kraft Heinz (KHC) or $3.76B. The company said, ” In evaluating our investment in Kraft Heinz for other-than-temporary impairment in the second quarter of 2025, we considered our ability and intent to hold the investment until the fair value exceeds carrying value, the magnitude and duration of the decline in fair value, and the operating results and financial condition of the company. We also considered certain changes in circumstances that occurred in the second quarter of 2025. Berkshire’s representatives on the Kraft Heinz Board of Directors stepped down on May 19, 2025, and the timing and extent of financial information Berkshire receives is now limited to the information that Kraft Heinz makes available to the public. On May 20, 2025, Kraft Heinz announced that it was evaluating potential strategic transactions to enhance shareholder value, although Kraft Heinz indicated there was no assurance that its process will result in a transaction or assurance to its outcome or timing. Given these factors, as well as prevailing economic and other uncertainties, we concluded that the unrealized loss, represented by the difference between the carrying value of our investment and its fair value, was other-than-temporary. Accordingly, in the second quarter we recorded a pre-tax impairment loss of approximately $5.0 billion as a component of our equity in the earnings of Kraft Heinz, which reduced the carrying value of our investment in Kraft Heinz to fair value.” Berkshire said its five largest holdings are American Express (AXP), Apple (AAPL), Bank of America (BAC), Coca-Cola (KO) and Chevron (CVX).