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.

B shares slid 3.1% in Monday morning trading after the investing and insurance giant posted Q2 earnings on Saturday that failed to spark investors' enthusiasm. The company took a massive $3.8B writedown on its Kraft Heinz (KHC) stake in its Q2 earnings.