Warren Buffett’s Berkshire Hathaway has taken a new stake in beverage producer Constellation Brands while trimming positions in major banks, including Citigroup and Bank of America.
The move, disclosed in a regulatory filing on Friday, underscores a shift in the firm’s investment strategy as it remains cautious about valuations.
Berkshire purchased 5.62 million shares of Constellation in the fourth quarter, totaling a $1.24 billion position by year-end.
The news sent Constellation’s stock rising 6.7% in after-hours trading, a testament to the Buffett effect, even though it remains unclear whether the legendary investor personally made the decision.
Best known for brands like Corona and Modelo Especial—now America’s top-selling beer after surpassing Bud Light—Constellation also owns premium wine labels such as Meiomi, Robert Mondavi, and Kim Crawford.
This marks Berkshire’s second alcohol-related investment, complementing its existing stake in Diageo, the company behind Guinness, Johnnie Walker, and Smirnoff.
But Berkshire wasn’t just in a buying mood. The firm reduced its Citigroup position by 74%, bringing its holding down to 14.6 million shares, and trimmed its long-standing Bank of America stake by 15% to 680.2 million shares.
Since July, Berkshire has pared its Bank of America holdings by a third, unwinding some of the 700 million shares it acquired in 2017 through warrants priced at just $7.14 per share.
With Bank of America stock now worth more than six times that amount, it seems Berkshire is taking profits while reassessing its financial sector exposure.
The selloff extended beyond traditional banking, with reductions in Capital One and Brazilian fintech lender Nu Holdings.
Berkshire also fully exited Ulta Beauty, a short-lived investment held for less than a year. Meanwhile, it increased its stake in Domino’s Pizza by 86%—perhaps signaling confidence in consumer spending trends.
Despite all these moves, one position remained untouched: Apple. Berkshire halted its selling spree of the tech giant, keeping its stake at $75.1 billion.
This is a notable shift after the firm unloaded $133.2 billion in stock—mostly Apple—through the first three quarters of 2024, pushing its cash reserves to $325.2 billion.
As business dynamics shift, Berkshire appears to be adjusting its portfolio cautiously.
As always, the latest 13F filing doesn’t specify whether these trades were made by Buffett himself or by Berkshire’s portfolio managers Todd Combs and Ted Weschler.
What is clear is that the firm remains selective in a volatile market. Investors will get a closer look at Berkshire’s broader strategy when its annual report is released on February 22, detailing the latest on its massive portfolio, including businesses like BNSF Railway and Geico.
For now, one thing is certain—Berkshire is keeping its cash close and its beer colder.
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