Money

Berkshire profits drop after $5 billion Kraft write-down

Berkshire Hathaway’s profits plummet 59% as Buffett writes down $5 billion on Kraft Heinz investment before retirement

Published

6 months ago

August 3, 2025

Ahron Young

Berkshire Hathaway’s profits plummet 59% as Buffett writes down $5 billion on Kraft Heinz investment before retirement

In Short:
– Berkshire Hathaway’s profits dropped due to a $5 billion writedown on Kraft Heinz, with net earnings at $12.37 billion.
– The company remains a net seller of stocks, with cash reserves at $344.1 billion and no share repurchases.

Warren Buffett’s Berkshire Hathaway has reported a significant drop in quarterly profits, primarily due to a $5 billion writedown on its Kraft Heinz investment.

Net earnings fell to $12.37 billion from $30.348 billion a year prior, marking Buffett’s first earnings report following his retirement announcement.

According to Business Insider, operating earnings also decreased by 4%, highlighting ongoing challenges for the conglomerate.

The writedown reduced Berkshire’s Kraft Heinz stake to $8.4 billion, reflecting a 65% value loss since their $24.6 billion investment in the merger.

Buffett has acknowledged overpaying for the company amid competitive pressures from private labels and shifting consumer preferences.

Cash Reserves

Despite these declines, Berkshire remains a net seller of stocks, having offloaded $6.9 billion while purchasing $3.9 billion.

This has kept cash reserves substantial at $344.1 billion, surpassing the market caps of firms like Coca-Cola.

The company also abstained from repurchasing its shares during the quarter, perceiving high valuations.

Money

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

12 hours ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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#USJobsReport #FederalReserve #StockMarket #MacroRisks #JapanEconomy #GlobalMarkets #CurrencyTrading #EconomicUpdate

Money

Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Published

1 day ago

February 11, 2026

Harvey Vargas

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

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Money

AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Published

1 day ago

February 11, 2026

Harvey Vargas

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech