Berkshire Hathaway Reports Major Equity Sales and Kraft Heinz Impairment Watch in Q2 2026
Warren Buffett's conglomerate sold $27.8 billion in equity securities during the first half while monitoring a $1.1 billion unrealized loss on its Kraft Heinz stake.
Record Equity Sales Accelerate
Berkshire Hathaway disposed of approximately $27.8 billion in equity securities during the first six months of 2026, more than double the $11.6 billion sold in the comparable 2025 period (10-Q filing, 2026-08-10). The sales generated taxable gains of $9.5 billion in the first half, up from $8.4 billion in the prior-year period.
The acceleration in portfolio activity comes as Berkshire maintains a substantial cash position, with U.S. Treasury Bills totaling $3.2 billion as of June 30, 2026, down from $17.6 billion at year-end 2025 (10-Q filing, 2026-08-10). MarginX data shows recent insider activity includes multiple gifts and conversions by Warren E. Buffett totaling 22 million shares.
Kraft Heinz Investment Under Pressure
The conglomerate's $1.1 trillion market capitalization masks ongoing challenges with its Kraft Heinz equity method investment, which traded 12.2% below its carrying value as of June 30, 2026 (10-Q filing, 2026-08-10). Berkshire owns 27.5% of Kraft Heinz's outstanding common stock.
In its quarterly filing, Berkshire stated it "concluded that the recognition of an impairment charge in earnings for Kraft Heinz was not required as of June 30, 2026," but acknowledged that "current expectations and intentions concerning this investment may change in the future, which may result in the recognition of an impairment loss at that time" (10-Q filing, 2026-08-10).
The investment remains sensitive following a $5.0 billion pre-tax impairment loss recorded in Q2 2025. The basis difference between Berkshire's share of Kraft Heinz shareholders' equity and its carrying value has declined to approximately $2.8 billion from $5.0 billion, reflecting goodwill and intangible asset impairments recorded by Kraft Heinz through March 2026 (10-Q filing, 2026-08-10).
Occidental Energy Positions Expand
Berkshire's energy sector exposure through Occidental Petroleum continues to evolve, with the conglomerate now owning 26.7% of outstanding common stock, excluding warrants (10-Q filing, 2026-08-10). The company also holds $8.5 billion in Occidental preferred stock with an 8% annual dividend and warrants to purchase 83.9 million shares at $59.59 per share, exercisable until one year after the preferred stock is redeemed.
Notably, Berkshire excluded its share of Occidental's $3.1 billion after-tax gain from the sale of OxyChem to Berkshire itself in Q1 2026 from its equity in earnings for the second quarter (10-Q filing, 2026-08-10).
Operating Businesses Show Stability
Beyond the investment portfolio, Berkshire's diverse operating businesses reported steady performance. Property, plant and equipment across railroad, utilities and energy operations totaled substantial holdings, while equipment held for lease—including railcars, aircraft and trailers—generated depreciation expense of $747 million in the first half of 2026, essentially flat versus $749 million in 2025 (10-Q filing, 2026-08-10).
MarginX data indicates the next FOMC rate decision is scheduled for September 16, 2026, with Berkshire expected to report Q3 2026 results on November 6, 2026.
This article was generated by MarginX from the 10-Q filing on 2026-08-10. It is not investment advice.