Berkshire Hathaway ( NYSE: BRK.A ) ( NYSE: BRK.B) on Saturday posted a nearly 4% decline in quarterly operating profit, hurt by soft insurance underwriting earnings and a $3.8B hit to its stake in ketchup giant Kraft Heinz ( KHC ).

Berkshire Hathaway records a $3.8 billion write-down on its Kraft Heinz investment, while reporting a decline in operating profit amid market challenges and leadership transition.

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.