Buffett`s ketchup problem: how did legendary investor lose $4,3 bn in a day?

Berkshire Hathaway, owned by legendary investor Warren Buffett, had suffered heavy losses in capitalization after Kraft Heinz shares collapsed amid negative news.
Its shares fell by more than 27% on Friday, reaching $ 34.95. For Berkshire, which at the end of 2018 owned more than 325 million shares, the losses were also significant, according to CNBC statement.
The main reason was a publication of the company`s financial report. The market was surprised to find out about billions in losses, a reduction in dividend payments, and the launch of an investigation by the US Securities and Exchange Commission.
"We continue to cooperate fully with the SEC, and at this time the Company does not expect matters subject to the investigation to be material," a Kraft spokesman said in a statement.
It`s an annual letter of appeal to investors turned out to be extremely short and consisted only 14 pages. Warren Buffett’s Berkshire Hathaway shocked investors by announcing that net profit in the fourth quarter fell to $ 25.4 billion, compared with $ 32, 6 billion a year earlier. All because of the unrealized investment losses and write-offs in Kraft Heinz.
Also, Kraft Heinz reported that it had revalued some of its assets and brands (Kraft, Oscar Mayer) for more than $ 15 billion, which led to a drop in their value.
It should be noted that Buffett has repeatedly complained about the lack of good investment opportunities in recent years.
Against this background, experts emphasize huge investments in US government bonds worth $ 112 billion. Moreover, investments in Treasuries have already exceeded $ 100 billion for six quarters in a row. There are most of over mentioned assets are short papers that can be easily sold and received cash. therefore, they are equated to cash.
By the way, Buffett`s company holds more T-bills than China and the UK.
The information above cannot be considered as an investment advice and past results do not indicate future performance.
**Investors should have experience and understand the risks of losing all the initial investment

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