• Berkshire Hathaway takes a $3.76 billion write-down on Kraft Heinz, reflecting struggles with the investment.
• Operating profit fell 4% to $11.16 billion, while net income dropped 59% to $12.37 billion.
• Buffett acknowledges the decade-old investment has not panned out amid changing consumer tastes.

Berkshire Hathaway, led by Warren Buffett, reported a substantial $3.76 billion write-down on its stake in Kraft Heinz during the second quarter, an admission that the decade-old investment has not been successful. The company also saw a 59% decline in net income, which fell to $12.37 billion from $30.35 billion the previous year, largely due to lower gains from its stock portfolio and the Kraft Heinz write-down, as reported by Reuters, HuffPost, and CBS News.

The company reported operating income of $11.16 billion, down from $11.6 billion a year prior, a decline attributed to falling insurance underwriting premiums and the overall economic landscape troubled by uncertainties regarding tariffs, according to India Times, Reuters, and CBS News.

Analysts have expressed concerns about Berkshire's lack of profitable investment opportunities, highlighting that Buffett views current market valuations as too high. Berkshire's cash reserves remain substantial at a near-record $344.1 billion, yet it reported selling more stocks than it purchased for an 11th consecutive quarter, with no stock buybacks since May, according to Reuters, HuffPost, and CBS News.

Despite the challenges faced by Kraft Heinz, which is reconsidering the 2015 merger that Berkshire helped finance, most of Berkshire's core businesses reported stable performance. However, the shift towards healthier products has impacted Kraft Heinz's brands, which include iconic names like Oscar Mayer and Velveeta, as noted by India Times and Reuters.

Buffett's decision to step down as CEO at the end of this year has added to investor anxiety, especially as shares of Berkshire dropped over 12% since the announcement. Analysts have indicated that the company's performance is at a turning point, exacerbated by the combination of mediocre results and the lack of new significant investments, according to CBS News and HuffPost.