Warren Buffett’s Berkshire Hathaway significantly increased its position in alcoholic beverages producer Constellation Brands, while exiting stakes in Citigroup and other financial firms, according to regulatory filings released Thursday.
Berkshire’s stake in Constellation Brands, the maker of Corona and Modelo Especial beers as well as Meiomi, Robert Mondavi, and Kim Crawford wines, more than doubled to approximately 12 million shares valued at $2.2 billion as of March 31. This represents a 6.6% ownership in the company. Following the disclosure, Constellation’s shares rose 2.7% in after-hours trading.
Conversely, Berkshire fully exited its three-year-old holding in Citigroup and ceased reporting any stake in Nubank, the Brazilian fintech lender. The company also reduced its Bank of America position to 632 million shares, down from 1.03 billion shares in July of last year. Additionally, Berkshire trimmed its investment in Capital One Financial, which is set to acquire Discover Financial Services later this week.
The latest filing does not specify which of Berkshire’s key investment decision-makers — Warren Buffett, portfolio managers Todd Combs and Ted Weschler, or incoming CEO Greg Abel — executed these trades. Combs and Weschler typically manage smaller investments, while Abel has been increasingly responsible for capital allocation.
Berkshire’s stock moves often influence market sentiment, with investors interpreting new or increased positions as endorsements by Buffett’s investment philosophy.
The company also secured permission from the U.S. Securities and Exchange Commission to keep some holdings confidential. Such exemptions prevent competitors and other investors from mimicking Berkshire’s moves before they are publicly disclosed. Berkshire has previously obtained confidentiality waivers for investments in Chevron, Chubb, and past stakes in Exxon Mobil, IBM, and Verizon.
Despite the purchases, Berkshire was a net seller of stocks in the first quarter, offloading $4.68 billion while buying $3.18 billion worth of equities, marking the 10th consecutive quarter of net stock sales.
Buffett has previously downplayed concerns over Berkshire’s $347.7 billion cash reserves, maintaining a cautious but opportunistic stance amid market uncertainties.
Related topics: