New York – Warren Buffett Loses More Than $4 Billion In Single Day On Kraft Heinz Plunge

New York – Warren Buffett’s Berkshire Hathaway is set to lose more than $4 billion in a single day after shares of Kraft Heinz — one of the investor’s largest holdings — plunged on slew of bad news including a dividend cut and a government investigation.

Stock of the packaged food giant, whose products include Heinz Tomato Ketchup, Jell-O and Kraft Macaroni & Cheese, plunged more than 25 percent shortly after the opening bell Friday. And for Berkshire — which owned more than 325 million shares at the end of 2018 — the losses are steep.

At current levels, Berkshire Hathaway is set to lose $4.2 billion. Kraft is Berkshire’s sixth-largest holding behind Apple, a few banks and Coca-Cola.

As one of the world’s most revered money managers, Buffett is renowned for his bargain-based buying strategy and molding it into a sustainable, no-frills investing philosophy. Though simpler and perhaps less exciting than others tactics on Wall Street that try to time the market with short-term trades, Buffett’s method has long served as the backbone for many looking for reliable, drama-free returns over a longer period.

As such, double-digit stock moves are almost unheard of for the managers at Berkshire Hathaway, who gravitate toward sizable dividends and strong household brands with steady cash flow. Going forward, Kraft Heinz will award shareholders with a dividend of 40 cents each quarter, a marked drop from the 63 cents it paid out prior.