Profits drop at Warren Buffett’s Berkshire Hathaway as it writes down its Kraft Heinz investment
Omaha, Neb. (AP) – Warren Buffett’s The company reported less than half in the second quarter, because a Writedown of 3.76 billion dollars is over the value of its shares. Kraft HeinzThis iconic food manufacturer is largely intended to take back the unification that Berkshire Hathaway helped Bankroll.
Berkshire said he earned $ 12.37 billion or $ 8,601 per quarter. This fell a year ago at $ 30,248 billion or $ 21,122 per class, because this year he earned a much smaller paper investment.
Berkshire’s earnings can be swinging from the quarter to the quarter, since the large investment portfolio should register the current value even if they do not sell most of the stocks. For this reason, Buffett advised investors to pay more attention to Berkshire’s business gains that except these investment gains. Although Berkshire shareholders surprised last year to sell Then a large part of the Apple shares that inflate their investment gains.
With this measure, Berkshire’s operating gains fell from $ 11.16 billion or $ 7,759.58 per share. This is compared to $ 11,598 billion or $ 8,072.16 per share a year ago. Most of Berkshire’s numerous companies’ product range – Geico, BNSF Railway, a group of public services and a production and retail business collection, such as major insurance companies – Economy and President Donald Trump’s tariffs usually performed well despite the uncertainty.
The four analysts investigated by Factset Research waited for Berkshire to declare $ 7.508.10 per class, so the results of Nebraska -based Holding were in front of the omaha.
Berkshire has more than 27% of Kraft Heinz stock, and for years there were representatives on the board of directors of the company. Buffett said that he had previously believed that the company’s iconic brands would be good over time, but he paid more for investment on the trip and underestimated the difficulties of branded foods by retailers and the growth of special label products.
This spring, Berkshire representatives resigned from the Kraft Heinz board shortly before the company has explored strategic options that may include rotating a large part of the company’s brand portfolio.
Since Kraft helped Kraft to buy Heinz in 2015, the company has been injured by changing consumer tastes and moving to healthier options from Kraft’s basic processed food collection.
Buffett’s is still sitting on a large pile of cash of $ 344.1 billion, but the company’s reserves fell slightly a little bit of $ 347.7 billion at the end of the first quarter. Buffett said he could not find attractive agreements for companies he understood in May.
Buffett surprised the shareholders at the annual meeting. Give up your CEO title Surrender the operations at the end of the year and Vice President Greg Abelbut it will be buffett Stay President.
