Warren Buffett Suffers Massive Jolt, Loses ₹31,600 Crore in Just One Company

New York (The Uttam Hindu): Warren Buffet, who is considered the 'magician of the stock market' and the world's biggest investor, has suffered a huge loss on one of his investments. His company Berkshire Hathaway has suffered a loss of about Rs 31,600 crore on the investment made in Kraft Heinz, a giant company that makes sauces and food products.

This information has come to light in the second quarter results of this year released by Berkshire Hathaway. A major reason for the decrease in the company's profits is the continuous decline in Kraft Heinz's shares. Berkshire Hathaway's stake in this company has been continuously decreasing for the last two years. By the end of the June quarter, the value of Berkshire's stake in Kraft Heinz has decreased to $ 8.4 billion.

An investment that is consistently giving losses

Usually the companies in which Warren Buffet invests earn profits, but the case of Kraft Heinz has proved to be just the opposite. Berkshire played an important role in the merger of Kraft and Heinz in 2015 and has a stake of more than 27% in the company. But since the merger, the company's shares have been diving. On one hand, while the American index S&P 500 has seen a stormy rise of 202 percent, Kraft Heinz's shares have fallen by 62 percent so far.

Why is Kraft Heinz failing?

The main reason for the poor performance of this giant food company is the changing eating habits of people. Customers are now moving towards healthy and private brand products instead of processed food, which has reduced the demand for Kraft Heinz products. The seriousness of the situation can be gauged from the fact that earlier this year, representatives of Berkshire Hathaway resigned from the board of Kraft Heinz. Now Kraft Heinz is considering selling some of its brands or separating them from the company.