Berkshire Hathaway Invests in Modelo Maker Constellation and Reduces Holdings in BofA and Citigroup

On February 14, Warren Buffett's Berkshire Hathaway revealed a new investment in alcoholic beverages producer Constellation Brands. Additionally, they reported reductions in holdings in four banks, including Citigroup and Bank of America. The regulatory filing detailed Berkshire's U.S.-listed stock holdings as of December 31. They disclosed a halt in selling Apple shares, which remained their largest common stock investment at $75.1 billion. Despite selling $133.2 billion in stock mainly Apple shares, Berkshire's concern over valuations persisted, increasing their cash stake to $325.2 billion. Berkshire's ownership in Constellation stock reached $1.24 billion by year-end, with the acquisition of 5.62 million shares in the fourth quarter. Following the disclosure, Constellation's share price surged 6.7% in after-hours trading, indicating investor confidence in Buffett's endorsement. Constellation Brands did not provide immediate comment. Berkshire's portfolio includes beer brands like Corona and Modelo Especial and wines such as Meiomi, Robert Mondavi, and Kim Crawford. They also have a stake in Diageo, known for Guinness beer, Johnnie Walker Scotch, and Smirnoff vodka. Apart from beverages, Berkshire's investments also extend to Domino's Pizza, with an 86% stake increase in the quarter. The filing mentioned reductions in Berkshire's Citigroup and Bank of America positions, with a 74% decrease in Citigroup shares and a 15% reduction in Bank of America shares. The Bank of America stake has progressively decreased since July. During the fourth quarter, Berkshire also lowered its stakes in Capital One and Brazilian fintech lender Nu Holdings. They entirely divested from cosmetics store chain Ulta Beauty, owned for less than a year. The filing did not specify Buffett's individual investments versus those managed by Berkshire's portfolio managers Todd Combs and Ted Weschler. Berkshire's diverse holdings include companies like the BNSF railroad and Geico car insurance, with their year-end financial results set to be featured in the upcoming annual report on February 22.