Berkshire Hathaway B Shares Tumble 2.9% on $3.8B Kraft Heinz Writedown and Buyback Pause as $4.98 Billion Volume Ranks 11th in Market Activity

On August 4, 2025, Berkshire Hathaway B shares (BRK.B) fell 2.90% amid a surge in trading volume of $4.98 billion, ranking 11th in market activity. The decline followed the conglomerate’s second-quarter earnings report, which revealed a $3.8 billion writedown on its Kraft Heinz investment and a pause in stock buybacks, signaling operational and strategic challenges.

The selloff intensified as investors reacted to the magnitude of the Kraft Heinz impairment, marking the second major writedown since 2019. The investment, initially a $28 billion merger with 3G Capital in 2015, has underperformed for years, with Berkshire’s stake now valued 45% below its cost basis. Meanwhile, the absence of buybacks—a long-standing confidence booster—exacerbated concerns about the company’s capital allocation strategy.

Compounding the pressure, Berkshire’s management transition timeline, with Warren Buffett set to step down by year-end, has heightened uncertainty over its future direction. The conglomerate’s diversified portfolio, spanning insurance, railroads, and utilities, faces scrutiny as its core investment decisions increasingly draw skepticism. Analysts noted the writedown reflects broader struggles in maintaining returns across its vast holdings.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. High-volume stocks, driven by institutional and algorithmic activity, tend to amplify price movements, as seen in the case of Berkshire’s recent volatility.