Warren Buffett has net sold stocks for 11 consecutive seasons! Berkshire's Q2 financial report shows a 59% drop in net profit, and Kraft Heinz has a $3.8 billion impairment becoming a landmine.

In the face of the market big dump triggered by Trump's tariffs, Buffett chose to continue net selling stocks and hoarding cash to 344 billion dollars in Q2. His "inaction" reflects valuation caution, stable succession, and defensive strategies. (Background: Buffett admitted: I really feel old, thinking and reading are becoming more difficult.. he first mentioned his decision to step down as CEO of Berkshire.) (Additional background: Buffett previously invested in the Brazilian crypto-friendly bank Nu Holdings, with Berkshire Hathaway's holdings reaching 1.2 billion dollars.) The Oracle of Omaha (Warren Buffett) led Berkshire Hathaway, which submitted its Q2 2025 financial report on Saturday, revealing that the company's operating profit fell 4% compared to the same period last year, dropping to approximately 11.16 billion dollars, while net profit plunged 59%, primarily due to a decline in common stock investment income and impairment of Kraft Heinz stock. ( Berkshire performed an asset impairment of about 3.8 billion dollars on Kraft Heinz ) Note: Kraft Heinz is a major American food and consumer goods manufacturer, with products including Heinz ketchup, Kraft cheese sauce, and Oscar Mayer ham. However, in recent years, it has faced inflationary pressures and changing consumer dietary habits, leading to a weakened demand for its food products. Buffett warned of tariff policy risks. At the same time, Buffett cautioned that in the first half of 2025, changes in international trade policies and tariff situations could adversely affect most of the company's operating businesses and investments, potentially impacting future financial reports. Berkshire’s A shares closed at 711,480 dollars on the 1st, having accumulated a drop of about 12% over the past three months. Notably, the Q2 financial report showed that Berkshire has been a net seller of stocks for the 11th consecutive quarter: selling 6.92 billion dollars, buying 3.9 billion dollars, and has not executed any buybacks for four consecutive quarters. Faced with the temporary "discount" brought about by Trump's tariff war, Buffett chose to patiently wait and observe. As of the end of June, Berkshire had cash holdings of 344 billion dollars, slightly lower than the record high of 348 billion dollars set in the first quarter, but still exceeding the total assets of most S&P companies. Buffett reiterated in his shareholder letter in February this year: Berkshire will invest the vast majority of its funds in stocks. This statement indicates that cash accumulation is merely a process, not the endpoint. When the real "downpour" arrives, this fund will be transformed into ammunition for acquisitions, increasing holdings, or privatization. Succession nodes and operational headwinds. We know that Buffett will officially step down by the end of 2025, with Greg Abel taking over as CEO. Maintaining financial flexibility before the handover allows the new leader to have ample buffer. The market will observe how Abel continues this discipline while turning cash into assets that can continuously generate compound interest. Meanwhile, Berkshire's "inaction" can also be seen as a calculated action: trading time for price, using patience for opportunity. For investors, it reminds us: the real risk is not missing the rebound but embracing the wrong asset at the wrong price. Further reading: Who is Abel Greg, Buffett's designated "successor" at Berkshire? What does he think about crypto assets? Related reports: Buffett's shareholder letter hides secrets: are we waiting for a stock market crash with cash on hand? Is the bear market likely to repeat the internet bubble calamity? Buffett's latest shareholder letter "does not mention crypto assets"! Cash reserves hit a new high, but emphasizes that he still prefers investing in stocks. Who is Abel Greg, Buffett's designated "successor" at Berkshire? What does he think about crypto assets? This article was first published in BlockTempo, the most influential blockchain news media.