Berkshire Hathaway Sells $1.2 Billion in VeriSign, Takes $5 Billion Impairment on Kraft Heinz
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VeriSign shares have dropped 8.2% over the past month, trailing the broader market. The timing of the sale signals a strategic pullback from a position Berkshire has held for years. Warren Buffett is the controlling stockholder of Berkshire Hathaway but disclaims any beneficial ownership beyond his economic interest in these securities.
Berkshire's $5 Billion Impairment in KHC
In other news, Berkshire recorded a $5 billion impairment on its stake in Kraft Heinz (KHC) during the second quarter. The company cut the carrying value of its 27.4% stake to $8.4 billion, down from $13.5 billion at the end of the first quarter. The write-down reduced Berkshire's net earnings after taxes by $3.8 billion. Kraft Heinz has lagged peers in performance and is reportedly reviewing strategic options, including a breakup.
This is the second impairment tied to Kraft Heinz since 2019. Two Berkshire-appointed board members resigned from the company in May. The move aligns with broader changes underway at Berkshire Hathaway as it prepares for a leadership transition.
Earnings Slide, Trade Risks Mount, Leadership Shift in Focus
Both developments occurred while Berkshire reported its Q2 earnings. Operating earnings for Berkshire Hathaway came in at $11.2 billion, a 4% year-over-year decline. Net income fell to $12.4 billion from $30.4 billion in the same period last year. The drop reflects the Kraft Heinz impairment and smaller investment gains compared to 2024. Berkshire ended the period with $344 billion in cash and Treasury holdings, slightly down from March levels. The company's cash position remains elevated despite a volatile market.
Looking ahead, Berkshire warned of uncertainty tied to global trade and tariffs. It cited increased risks from U.S. policy changes and their potential impact on operations and equity holdings. Leadership changes are also on the horizon. Greg Abel will take over as chief executive in January 2026. Warren Buffett will stay on as chairman of the board. Shares of Berkshire Hathaway are down 12% since Buffett announced his succession plan. The S&P 500 has gained 10% over the same span.
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