Berkshire Hathaway reported a $3.8 billion impairment on its decade-old investment in Kraft Heinz, driving a sharp drop in second-quarter results. Net earnings fell to $12.37 billion from $30.35 billion a year earlier, while operating profit declined 4% as weaker insurance underwriting offset steady results at the railroad and energy units. The Omaha-based conglomerate generated revenue of roughly $92.5 billion and ended June with a record-high $344.1 billion in cash, yet it opted against share repurchases for a fourth straight quarter. Berkshire continued to trim its equity portfolio, unloading $1.2 billion of VeriSign stock and reducing that holding to 8 million shares. In its regulatory filing the company warned that escalating tariffs and other trade-policy shifts could have "adverse consequences on most, if not all, operating businesses." Investors reacted by sending Class B shares down as much as 3.4% to $457 on Monday, their lowest level since February and about 15% below the May peak that followed Warren Buffett’s retirement announcement. Succession planning remains in focus, with vice-chairman Greg Abel set to assume the chief-executive role when the 94-year-old Buffett steps aside at year-end.