The Kraft Heinz Company (NASDAQ:KHC) traded lower on Monday after Berkshire Hathaway (BRK.A) (BRKB) recorded a substantial $3.76 billion after-tax writedown or impairment on its investment in the food company.

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.

The write-down of Berkshire Hathaway's 27.4% stake in Kraft Heinz, its second for the company, reflects a significant decline in the value of the investment. Berkshire had taken a $3 billion write-down in Kraft Heinz in 2019.