"It's still a wonderful business in that it uses about $7 billion of tangible assets and earns $6 billion pretax on that," Buffett said. "But we, and certain predecessors, we paid $100 billion in tangible assets. So for us, it has to earn $107 billion, not just the $7 billion that the business employs."
But Buffett added that he had no intention of selling his stake in Kraft, acknowledging that it would be difficult to do so because the company's position in the stock is so big.
Buffett teamed with Brazilian private equity company 3G Capital in 2013 to acquire cash-flush, strong global brand Heinz. The billionaire CEO of Berkshire Hathaway later worked with 3G to help finance Heinz's $49 billion merger with Kraft Foods Group in 2015. Buffett said he did not overpay for Heinz, however.
Berkshire Hathaway's quarterly earnings took a hit as the company recorded a $3 billion write-down on its investment in Kraft Heinz. Berkshire disclosed the write-down after Kraft Heinz last week slashed the value of its Oscar Mayer and Kraft brands by $15.4 billion.
Kraft's write-down sent the stock plummeting more than 27 percent on Friday. Berkshire is one of Kraft Heinz's biggest shareholders.