|  | | | | | | Warren Buffett's Berkshire Hathaway is taking a nearly $4 billion hit as Kraft Heinz craters to a record low
- Kraft Heinz shares plunged Friday, the morning after the company reported quarterly results.
- The company disclosed it had received a subpoena from the Securities and Exchange Commission related to its accounting practices. It also revealed a $15 billion charge related to the value of its Kraft and Oscar Mayer trademarks.
- Warren Buffett's Berkshire Hathaway is a major shareholder in the company; as of December 31 it owned nearly 326 million shares, or a 26.71% stake worth $15.4 billion before Friday's plunge.
- Berkshire most likely lost about $3.9 billion as the stock plunged to a record low.
- Watch Kraft Heinz trade live.
Kraft Heinz's biggest investor, the Warren Buffett-led Berkshire Hathaway, is seeing a substantial loss as shares plunged to a record low on Friday.
The food and beverage giant plummeted nearly 27%, extending its losses from Thursday evening, after reporting quarterly results.
Kraft disclosed in its quarterly report that it had received a subpoena from the Securities and Exchange Commission related to an investigation into its accounting policies. It also revealed a $15 billion charge related to the value of its Kraft and Oscar Mayer trademarks.
Read more: Kraft Heinz shares took a dive after it revealed Securities and Exchange Commission subpoena over its accounting practices
As of December 31, Berkshire held nearly 326 million shares of Kraft Heinz, amounting to a 26.71% stake. That was worth about $15.4 billion before Thursday night's plunge. Berkshire most likely lost about $3.9 billion because of the stock's rout.
Buffett, Berkshire's chairman and CEO, left Kraft's board last April after a five-year run. "My stepping down from the board represents no change of any kind in my or Berkshire's relationship with 3G," Buffett told the Financial Times then. "I am on no public boards (except Berkshire) and expect to be on none in the future."
In 2015, H.J. Heinz acquired Kraft Foods Group. Buffett had purchased Heinz in 2013 in partnership with 3G Capital. Buffett paid $72.50 a share, or about twice where the stock was set to open Friday.
On Thursday, Kraft Heinz said it was cutting its quarterly dividend to $0.40 a share from about $0.63, citing a challenging market environment blamed on cost inflation.
As far as its quarterly results, Kraft reported adjusted earnings of $0.84 a share on net sales of $6.89 billion, falling short of the $0.94 and $6.94 billion that analysts surveyed by Bloomberg were expecting.
Berkshire is expected to release its own quarterly results Saturday, alongside Buffett's widely anticipated letter to shareholders.
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