In a surprising move, Warren Buffett's Berkshire Hathaway has announced its exit from its two-year investment in Paramount Global. The famed investor and CEO disclosed this news during Berkshire's annual meeting in Omaha, Nebraska, on Saturday.

Buffett candidly revealed, "We sold it all, and we lost quite a bit of money, that happens in this business too." Putting to rest speculation that one of his deputies may have initiated the trade, he asserted, "I did it all by myself, folks."

Berkshire Hathaway shocked Wall Street when it revealed its $2.6 billion stake in Paramount in May 2022. Throughout the following year, the company continued to bolster its position, becoming the largest non-voting shareholder. However, Paramount's fortunes took a downturn as it struggled against the high costs of competing in the streaming industry and a lackluster M&A market.

To invest in streaming, Paramount was forced to slash its dividend last year. Facing financial difficulties, the company engaged in sale talks, with an exclusive negotiating window with a consortium led by David Ellison's Skydance recently concluding, and a new proposal from Apollo and Sony currently on the table.

The uncertainty surrounding these negotiations and the potential consequences if a deal does not materialize has left Paramount's stock price on shaky ground. Last week, the company also made headlines by parting ways with CEO Bob Bakish, appointing a trio of executives to form an "office of the CEO."

At Berkshire's shareholder meeting last year, Buffett expressed skepticism about companies drastically cutting their dividends and questioned the sustainability of the streaming business. Now, reflecting on his experience with Paramount, he admitted that it has deepened his understanding of the entertainment industry and how people spend their leisure time.

Buffett humbly stated, "I certainly looked harder about the whole question of what people do with their leisure time and what the governing principles are of running an entertainment business of any sort…I think I'm smarter now than I was a couple of years ago, but I also think I'm poorer because I acquired the knowledge in the manner I did."

Berkshire Hathaway had started selling its stake in Paramount at the end of last year, as revealed in February. The decision to exit the position is expected to have a significant impact on the company's financials, as the investment incurred substantial losses.

This development underscores the risks inherent in the investment world, even for legendary figures like Warren Buffett. It serves as a reminder that success does not always come without setbacks and lessons learned, even for Wall Street titans.