Ketchup Giant Shakes Buffett’s Empire – How the World’s No.1 Investor Lost ₹32,905 Cr

Business News: Warren Buffett, often hailed as the world’s most trusted investor, has faced a rare and significant setback. Berkshire Hathaway, led by Warren Buffett, has suffered a significant loss of around ₹32,905 crore ($3.76 billion) on its investment in Kraft Heinz—an investment once hailed as a testament to Buffett's strategic acumen.

A Decade-Old Bet That Backfired

In its financial disclosures for the second quarter of FY2025 (April–June), Berkshire Hathaway revealed a $3.76 billion impairment in its holding of Kraft Heinz shares. This marks a definitive signal that Buffett’s long-standing investment in the food and beverage giant has fallen short of expectations.

Sharp Decline in Kraft Heinz Stock

Kraft Heinz’s stock has dropped by over 22% in the past year. As a result, Berkshire was forced to reduce the reported value of its holding on its balance sheet—acknowledging that the market value of its shares has significantly eroded.

Second Major Write-Down Since 2019

This isn’t the first time Berkshire has had to reassess this investment. Back in 2019, the company had already written down $3 billion, pointing to ongoing underperformance. The repeated markdowns suggest that Kraft Heinz continues to struggle with long-term profitability despite once being a promising acquisition.

Changing Consumer Habits Behind the Decline?

Industry analysts attribute Kraft Heinz’s struggles to a fundamental shift in consumer preferences. In recent years, there has been a marked move toward healthier, organic, and fresh food options, leaving legacy packaged food brands like Kraft Heinz grappling with falling demand. Even Buffett admitted in the past that Berkshire overpaid in the 2015 merger of Kraft Foods and H.J. Heinz, calling it one of his most costly investment mistakes.

A New Wager on Occidental Petroleum

Despite this setback, Berkshire Hathaway has remained committed to diversifying its investment portfolio. One of its largest recent investments is in Occidental Petroleum (OXY.N), where it holds a 28.1% stake. Interestingly, this holding is currently $5.3 billion above its fair value, and no impairment has been recorded—at least for now.

Even Buffett Isn’t Immune to Mistakes

This episode is a reminder that no investor—not even Warren Buffett—is immune to market miscalculations. While his record remains among the best in financial history, this misstep serves as a valuable lesson: even long-term investments carry inherent risk. Success in investing requires not just insight but also the humility to accept and learn from occasional failures.