October 1, 2025
Warren Buffett Heinz Kraft 3
Warren Buffett has laid down the credo that investors who “know” should have concentrated portfolios. However, the perils of that credo became evident after his all-time favourite “safe haven” blue-chip stock plunged and caused his portfolio colossal losses of $4 Billion. The aggregate loss since investment is $10 Billion
Warren Buffett has laid down the credo that investors who “know” should have concentrated portfolios. However, the perils of that credo became evident after his all-time favourite “safe haven” blue-chip stock plunged and caused his portfolio colossal losses of $4 Billion. The aggregate loss since investment is $10 Billion




Kraft Heinz’s Plunge Batters Buffett and Investors

Warren Buffett’s Berkshire Hathaway holds a big chunk of 325 million shares of Kraft Heinz, a mega blue-chip with iconic brands and dominant market share.

The investment is valued at nearly $14 Billion.

Unfortunately, yesterday, the stock tanked more than 26% after it reported “disastrous” earnings and got hauled up by the SEC for alleged faulty accounting policies.





MTM Loss: $4 Billion in one day, $10 Billion since investment

Berkshire Hathaway suffered a MTM loss of $4 Billion over its investment in Kraft Heinz yesterday. The total loss since the investment was first made is a whopping $10 Billion.





Gurus should have concentrated portfolios, novices should diversify

Warren Buffett advised that diversification is a “terrible mistake”.

Diversification is protection against ignorance. It makes little sense if you know what you are doing,” he opined.

However, Warren made it clear that his advice is directed towards professional investors who “know” what they are buying and why.

Average investors should diversify widely to the extent of investing in an Index Fund,” he rightly advised.

However, the moot question is whether even the so-called professional investors really “know” what is going on.

We saw recent examples of fiascos like Kitex Garments, Manpasand Beverages, PC Jeweller, DHFL, Tata Motors etc which suggests that even the so-called knowledgeable investors haven’t a clue.

In fact, Tata Motors, which was once described as a “screaming buy” by experts, shocked everyone by reporting a loss of Rs. 26,961 crore.

Naturally, the stock crashed and eroded colossal fortunes in the blink of an eye.

Even Bill Ackman, who is nicknamed “Baby Buffett” for his formidable investing skills, lost a massive fortune after one of his concentrated bets went sour.

Never put more than 5% in one stock: Billionaires Jon Yarbrough & Kevin O’Leary

Following the debacles of concentrated portfolios, it is better if we follow the advice offered by Billionaires Jon Yarbrough & Kevin O’Leary and diversify widely.

I lost 80% of that money in the dot com bust. I learned about diversification the hard way …. The best investment advice I’ve received is to be diversified. Being diversified is the best risk mitigator,Jon Yarbrough said.

Kevin O’Leary echoed the same advice.

Diversification is the only free lunch in investing ….

I see this happening so many times. Here’s the basic lesson that I’ve learnt that I never vary from. And this works, trust me.

Never more than 5% of your portfolio in any one name no matter how great the story is.

If it is the next Nortel, the next …., who cares.

5% max. For me, usually it is 2 ½ to 3%.

I never let a stock get bigger than that in my portfolio,” O’Leary said.

He also advised that we should “never ever, ever” have more than 20% in any one sector.









6 thoughts on “Warren Buffett Suffers Loss Of Rs. 26,000 Cr (In One Day) From “Safe Haven” Stock

  1. So much for an iconic brand losing 26% in one single day. Is it equivalent to some Anil Ambani Group companies in India. SEC investigation and write down of impaired assets is a huge challenge in America as well as in India as investors become informed and demand fair business practices from corporates.

  2. One could have upto 10% in single stock through investment, no harm if stock weight goes beyond 10% due to appreciation. One can have minimum 20 stocks and maximum 40 stocks no stock with less than 1% weight.

  3. I still would respect warren’s quotes to owing few stocks, things we need to ask is would he be the richest man if he had held 5000 stocks in his portfolio? one stock tanks for him, he will still be ranked no1….20 or 40 stocks a big no no

  4. First of all, the amount is not huge considering his personal and Berkshire portfolio. Secondly, you look at portfolio returns and not individual stock returns.
    Thirdly, even Berkshire or Apple stock had drawdowns of more than 50 per cent in few occasions but that didn’t make them bad investments.

    1. It is not about bad investments but bad business with changes in tastes and people becoming health conscious rather than having excessive salts… then it becomes bad investment ….over and above that you have governance issues and debt overhang….perfect recipe for disaster….

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