Warren Buffett’s **Berkshire Hathaway** is making waves in the investment world, having recently **more than doubled its stake in Constellation Brands**—a prominent player in the alcoholic beverages sector—while simultaneously unloading its shares in **Citigroup** and other financial entities. This strategic shift hints at Berkshire’s evolving portfolio as it seeks to capitalize on new opportunities.
Berkshire Hathaway’s Investment Moves
Doubling Down on Constellation Brands
In a regulatory filing detailing its stock holdings as of March 31, Berkshire disclosed a significant leap in its investment in Constellation Brands. The company’s stake surged from 5.6 million shares to approximately 12 million shares, translating to a 6.6% ownership in the producer of popular beverages like Corona, Modelo Especial, and a host of fine wines including Meiomi, Robert Mondavi, and Kim Crawford. Following this announcement, Constellation’s shares saw a 2.7% increase after market hours.
Exiting Citigroup
In a notable pivot, Berkshire has decided to completely exit its three-year stake in Citigroup and has ceased reporting shares in the parent company of Brazilian fintech lender Nubank. This shift indicates a redirection in investment focus, as the company also reduced its stake in Bank of America, trimming its holdings to 632 million shares from 1.03 billion. Moreover, a stake in Capital One was decreased as the competitor plans to acquire Discover Financial Services.
The Mastermind Behind the Moves
Berkshire’s quarterly portfolio disclosures, while enlightening, do not attribute specific trades to Buffett or his trusted portfolio managers, Todd Combs and Ted Weschler. However, it’s noteworthy that Buffett has begun delegating more responsibilities to future CEO Greg Abel. This delegation raises intriguing questions about the strategic direction of the conglomerate moving forward.
Market Reactions and Future Prospects
When Berkshire announces changes in its holdings, stock prices often experience a boost, partly because investors view these alterations as endorsement from the Oracle of Omaha himself. Between January and March, Berkshire purchased $3.18 billion in equities and sold $4.68 billion, marking the 10th consecutive quarter as a net seller of stocks. As of the end of March, the company maintained a staggering $347.7 billion in cash and equivalents.
While Berkshire’s largest position remains a 300 million share stake in Apple—valued at $66.6 billion—the company is also expanding its investments in several Japanese trading houses. At the annual shareholder meeting on May 3, Buffett addressed concerns regarding the accumulated cash, emphasizing the significance of waiting for the right investment opportunities, stating, “We would rather have conditions that are developed where we would have like $50 billion in cash… but that just isn’t the way the business works.”
Conclusion: The Legacy Continues
Berkshire Hathaway is not just an investment firm; it is an institutional leader in strategic asset management, with close to 200 subsidiary businesses under its umbrella, including Geico, BNSF, and many others in energy, retail, and services. As Warren Buffett, now 94, remains at the helm, he continues to be a pivotal figure in global investing, currently ranked as the fifth-richest person in the world with a net worth of $157.8 billion. The anticipated shift to Greg Abel as CEO in 2026 indicates an exciting future ahead for this investment powerhouse.
For ongoing insights into investment strategies and market trends, stay tuned. The next chapter in Berkshire’s saga is just beginning!
