Berkshire Hathaway reported a $3.76 billion write-down for its shares in Kraft Heinz during its second quarter. This write-down reveals Berkshire Hathaway’s admission that its initial investment into the food conglomerate was overvalued and is now correcting course.

Buffett's conglomerate signaled it remains cautious about market valuations, amid uncertainty about tariffs and growth in the broader economy.

Warren Buffett's company reported less than half as much profit in the second quarter as it took a $3.76 billion writedown on the value of its stake in Kraft Heinz as that iconic food producer considers largely undoing the merger that Berkshire Hathaway helped bankroll.