Kraft Heinz(US:KHC) Sou Hu Cai Jing·2025-08-03 12:51Core Insights - Warren Buffett's Berkshire Hathaway reported a significant write-down of $3.8 billion on its investment in Kraft Heinz, reducing its book value to $8.4 billion from over $17 billion at the end of 2017, confirming perceptions of investment failure [1][4] - Despite the apparent loss, analysis indicates that Buffett has actually made a profit of nearly 60% on this investment when accounting for dividends received [2][7] Investment Performance - The write-down is attributed to the continuous decline in Kraft Heinz's fair value, with the company's stock price dropping 62% since the merger in 2015, while the S&P 500 has risen by 202% during the same period [4] - Berkshire's total investment in Kraft Heinz reached $9.8 billion, with the current market value of its 27.4% stake at approximately $8.8 billion, plus $6.3 billion in cash dividends received over the years [7][8] Comparison with Other Shareholders - Other shareholders who held Kraft Foods stock since the merger have seen a total return of only 8% over ten years, highlighting Buffett's superior investment terms [8] - If these shareholders had invested in Unilever instead, their capital could have nearly doubled, emphasizing the challenges faced by Kraft Heinz in adapting to consumer trends towards healthier foods [9] Strategic Moves - Berkshire Hathaway has distanced itself from Kraft Heinz, including relinquishing its board seat, which may provide more flexibility for a potential exit from the investment [5][6] - Buffett's ability to secure better terms in investments allows him to mitigate losses, even in what are perceived as significant failures [9]