Berkshire takes swig of Modelo maker Constellation; cuts BofA, Citigroup (updated)

Nu Holdings

14/02/2025 23:15

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      Berkshire invests in Modelo producer Constellation
    

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      Bank of America, Citigroup stakes reduced
    

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      Berkshire stops selling Apple
    

  
 (Adds details throughout about Constellation, Bank of America,
Apple, other investments; adds byline)
    By Jonathan Stempel
       Feb 14 (Reuters) - Warren Buffett's Berkshire Hathaway
 BRKa.N  on Friday disclosed a new investment in alcoholic
beverages producer Constellation Brands  STZ.N , and said it has
reduced its holdings in four banks, including Citigroup  C.N 
and Bank of America  BAC.N .
        In a regulatory filing detailing its U.S.-listed stock
holdings as of December 31, Berkshire also disclosed it has
stopped selling shares of Apple  AAPL.O , which remained its
largest common stock investment at $75.1 billion.
  
        The filing nonetheless suggests that Berkshire remains
concerned about valuations, after selling $133.2 billion of
stock--primarily 490 million Apple shares--between January and
September 2024, and letting its cash stake grow to $325.2
billion.
  
        Berkshire owned $1.24 billion of Constellation stock at
year end, after purchasing 5.62 million shares in the fourth
quarter.
  
        In after-hours trading, Constellation's share price rose
6.7%, reflecting what investors view as Buffett's seal of
approval regardless of whether the revered billionaire investor
personally did the buying.
  
        Constellation did not immediately respond to requests
for comment.
  
        Its beer brands include Corona and Modelo Especial,
which in 2023 surpassed Bud Light as the top-selling beer in the
United States, while its wine portfolio include Meiomi, Robert
Mondavi and Kim Crawford.
  
        Berkshire also owns a small stake in Diageo  DGE.L ,
whose brands include Guinness beer, Johnnie Walker Scotch and
Smirnoff vodka.
  
        To go with the alcohol, Berkshire also invests in
Domino's Pizza  DPZ.O , and boosted its stake by 86% in the
quarter.
  
        In Friday's filing, Berkshire said it lowered its
Citigroup stake 74% to 14.6 million shares, and its Bank of
America stake, until recently its second-largest common stock
holding, 15% to 680.2 million shares.
  
        Berkshire has reduced its Bank of America stake by
one-third since July, when it owned 1.03 billion shares.
  
        It has also unwound a small portion of the 700 million
Bank of America shares it bought in 2017, when it redeemed $5
billion of preferred stock acquired six years earlier and used
proceeds to exercise warrants at $7.14 per share.
  
        Bank of America shares have since risen more than
sixfold.
  
        During the fourth quarter, Berkshire also reduced its
stakes in Capital One  COF.N  and Brazilian fintech lender Nu
Holdings  NU.N .
  
        It exited one stock altogether, cosmetics store chain
Ulta Beauty  ULTA.O , which it owned for less than a year.
  
        Friday's filing does not say which investments are
Buffett's and which are from Berkshire portfolio managers Todd
Combs and Ted Weschler, who typically handle smaller Berkshire
investments.
  
        Berkshire also owns dozens of companies including the
BNSF railroad and Geico car insurance, and its annual report
expected on February 22 will include its year-end financial
results.
  

 (Reporting by Jonathan Stempel in New York; editing by Diane
Craft)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))