Berkshire Hathaway reported a $3.76 billion write-down for its shares in Kraft Heinz during its second quarter. This write-down reveals Berkshire Hathaway’s admission that its initial investment into the food conglomerate was overvalued and is now correcting course.

Aug 2 (Reuters) - Warren Buffett's Berkshire Hathaway (BRKa.N) said on Saturday it took a $3.76 billion write-down on its stake in Kraft Heinz (KHC.O) during the second quarter, an acknowledgment the decade-old investment hasn't worked out.

Berkshire said it had slashed the carrying value of its 27.4 per cent stake in Kraft Heinz to $8.4bn, from $13.5bn at the end of the first quarter, a roughly $5bn impairment. It noted the hit reduced its total earnings after taxes by $3.8bn, according to the quarterly statement.