Anonymous ID: b51fa9 Feb. 23, 2019, 6:27 a.m. No.5344599   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>4617 >>4763

Kraft Heinz : Warren Buffett's Kraft Heinz Bet Dragged Down Berkshire Hathaway in 2018

(the letter does not account for yesterday's activity)

 

The world's most famous investor had one of his worst years ever in 2018.

 

Warren Buffett's Berkshire Hathaway Inc. said Saturday it swung to a $25.4 billion loss in the fourth quarter due to an unexpected writedown at Kraft Heinz Co. and unrealized investment losses.

 

Berkshire posted operating earnings of $5.7 billion, up from $3.3 billion a year earlier, due to increased earnings from Berkshire's railroads, energy business and other segments. For the year, Berkshire posted $24.8 billion in operating earnings. That was a record high, Mr Buffett said in his annual letter to shareholders that was also released Saturday.

 

Mr. Buffett in his letter offered no hints about who will eventually succeed him as CEO. But he did offer praise for deputies Ajit Jain and Greg Abel, saying that decisions to elevate the two men last year into more prominent roles "were overdue."

 

Messrs. Jain and Abel were promoted in early 2018 to vice chairmen and now oversee many of Berkshire's day-to-day operations. One of the two men is expected to succeed Mr. Buffett as chief executive.

 

"Berkshire is now far better managed than when I alone was supervising operations," Mr. Buffett wrote.

 

Berkshire reported net earnings of $4 billion in 2018, down from $44.94 billion in 2017. Berkshire's 2017 earnings soared in the fourth quarter of 2017 due to changes in the U.S. tax law that lowered Berkshire's deferred tax obligations for stock investments that it currently holds.

 

https://www.marketscreener.com/THE-KRAFT-HEINZ-COMPANY-22816979/news/Kraft-Heinz-Warren-Buffett-s-Kraft-Heinz-Bet-Dragged-Down-Berkshire-Hathaway-in-2018-28058509/