Berkshire Hathaway reported a staggering 60% plunge in Q2 net profit, plummeting to $12.4 billion from $30.5 billion a year earlier. The downturn stems largely from a $3.76 billion post-tax writedown on its 27% stake in a struggling food conglomerate, marking the latest setback for the controversial investment. The holding company’s earnings per A-share nosedived to $8.60 from $21.12, rattling investors. Meanwhile, its insurance segment—a traditional stronghold—also underperformed amid declining premium revenues.
Leadership Transition Looms Amid Challenges
The 94-year-old chairman confirmed plans to step down by year-end, passing the reins to a longtime deputy. Markets reacted cautiously, with Berkshire shares dipping 0.6% pre-market. Despite maintaining a $1 trillion valuation as the top non-tech U.S. firm, analysts question whether the new leadership can sustain its historic outperformance amid mounting headwinds. The food investment’s persistent woes—including recent billion-dollar losses and potential breakup talks—add to the uncertainty surrounding Berkshire’s post-Buffett era.
