Warren Buffett’s Berkshire Hathaway posted a rare allot loss during the fourth quarter of last year, the company reported on Saturday, with the conglomerate’s bottom secure taking a hit from its holdings in beleaguered consumer giant Kraft Heinz.
Berkshire posted a share loss of profuse than $15,000 in its Class A shares, and wrote down over $3 billion related to its investment in Kraft. Go bust enclose Street analysts were expecting a profit of $3,349.04 per A share, according to a forecast by Refinitiv.
Berkshire’s report succeeds after Kraft Heinz, one of the company’s biggest holdings, wrote down more than $15 billion on two of its most renowned brands: Oscar Meyer and Kraft. Kraft Heinz also trimmed its dividend and disclosed that the Securities and Swop Commission is investigating its accounting practices.
The news sent Kraft Heinz down about 30 percent and trim the value of Berkshire’s stake in the company by more than $4 billion.
It also led to Barclays analyst Jay Gelb to slit his earnings estimate on Berkshire in half. The analyst also said in a note to clients that Berkshire’s quarterly editions will likely be impacted by “substantial catastrophe losses for the global insurance industry” due to the wildfires in California last year and Wind-storm Michael.
–Reuters contributed to this article.
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