Warren Buffett Loses More Than $4B as One Stock Plunges

Kraft Heinz ranks among Berkshire Hathaway's largest holdings.
  • Warren Buffett’s Berkshire Hathaway lost more than $4 billion in a single day on Feb. 22.
  • Shares of Kraft Heinz, one of Berkshire Hathaway’s largest holdings, plummeted after the company reported troubling financial and legal news.
  • In somewhat ironic timing, Buffett is expected to deliver his letter to shareholders on Feb. 23.

Losing money can make anyone feel bad, so imagine how Warren Buffett feels today after losing $4.4 billion. His iconic holding company Berkshire Hathaway lost billions after The Kraft Heinz Co., a key investment for Buffett, reported dividend cuts amid a government investigation.

The timing of Kraft’s collapse isn’t optimal for Berkshire Hathaway; Buffett is expected to deliver his famous letter to shareholders on Feb. 23.

See: 4 Key Things to Watch for in Warren Buffett’s Annual Letter to Shareholders

Kraft Heinz Problems

Kraft Heinz, the owner of beloved brands such as Oscar Mayer, Kraft Macaroni & Cheese and Heinz Ketchup, isn’t having the best year. The company released its fourth quarter earnings report on Feb. 21, revealing a net loss of $12.6 billion to common shareholders. Furthermore, the company received a subpoena in October 2018 from the Securities and Exchange Commission. Heinz has been under investigation for dodgy accounting practices in relation to its vendors.

As of the morning of Feb. 22, Kraft Heinz shares were hovering around $35, roughly a 27 percent loss of value from the day before when it closed at $48.18.

Kraft Heinz and More: Here’s How All Your Favorite Companies Are Connected

Warren Buffett’s Berkshire Hathaway Holdings

Kraft Heinz ranks among Berkshire Hathaway’s largest holdings, with a nearly 27 percent stake in the company. Buffett’s biggest investments rank, as of Dec. 31, 2018, as:

  1. Apple
  2. Bank of America
  3. Wells Fargo
  4. Coca-Cola
  5. American Express
  6. Kraft Heinz
  7. U.S. Bancorp
  8. JPMorgan Chase
  9. The Bank of New York Mellon
  10. Moody’s Corporation

How Much Does the Average Investor Lose in General?

Well, it’s not $4 billion. But it is generally accepted that Americans are bad at investing. A 2017 report by Dalbar revealed that equity mutual fund investors consistently underperformed against the market.

Investing can be tricky, and because it’s linked to money, it’s emotional, too. The report attributed the underperformance to “the psychological behavior of individual investors,” according to MarketWatch. If you’re just starting out in investing, GOBankingRates has tips just for you.

Find Out: How to Keep Your Emotions From Messing With Your Investing Strategy

Keep reading to find out what Warren Buffett’s $1 billion investment in his own company means for you.

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