Warren Buffett’s Berkshire Hathaway has made some notable changes to its investment portfolio, as revealed in recent regulatory filings. The company reduced its stakes in Bank of America and Citigroup, while maintaining its position in Apple and taking a new stake in Constellation Brands. Berkshire Hathaway cut its stake in Bank of America by approximately 30%, which equates to a reduction of around 150 million shares.
This move surprised many, given Buffett’s previous strong endorsement of the bank. The company also reduced its holdings in Citigroup, though to a lesser extent compared to Bank of America. These adjustments are seen by analysts as a shift in Berkshire’s investment strategy in the financial sector.
Buffett’s firm has traditionally had significant investments in banking, reflecting his long-term confidence in financial institutions. However, the recent reductions suggest a more cautious approach amidst ongoing economic uncertainties and challenges faced by banks, such as rising interest rates and regulatory pressures.
Buffett’s investment portfolio adjustments
On the other hand, Berkshire Hathaway chose to leave its substantial stake in Apple unchanged during the fourth quarter of 2024. This decision indicates continued confidence in the tech giant, which has been one of the standout investments in Berkshire’s portfolio. In addition to maintaining its position in Apple, Berkshire Hathaway took a new stake in Constellation Brands, a leading beverage alcohol company known for its portfolio of iconic beer, wine, and spirits brands.
This move signals diversification within the firm’s holdings and an interest in expanding its exposure to the consumer goods sector. These strategic adjustments were revealed in Berkshire Hathaway’s quarterly 13F filing with the SEC, a document that institutional investment managers with over $100 million in qualifying assets are required to file. The stakes were adjusted as of December 31, 2024, according to the filing.
For investors, Berkshire Hathaway’s decisions are often seen as a benchmark due to Warren Buffett’s reputation for savvy investing. The company’s moves are closely watched and can have significant influences on market perceptions and valuations. Overall, Berkshire Hathaway’s latest strategic choices underscore its diversified investment approach, focusing on both technology-driven growth and more traditional consumer goods sectors, while also adjusting its exposure to the financial sector based on current market conditions and uncertainties.
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