13F: Berkshire sells banks, buys alcohol – a change in Buffett’s strategy

Berkshire Hathaway Sells Bank of America Shares While Investing in Constellation Brands

Berkshire Hathaway, led by Warren Buffett, continues to sell a significant portion of its Bank of America holdings in the fourth quarter while adding a new investment in Constellation Brands.

According to a new regulatory filing, Berkshire sold more than 117,000 shares of Bank of America in the last quarter, yet still holds an 8.9% stake worth just under $30 billion at the end of 2024. Buffett began mass sell-offs back in July after adopting a more pessimistic outlook on the banking sector following the 2023 financial crisis.

Some analysts speculate that he is reducing his position in the bank after Bank of America’s strong Q4 earnings report failed to boost the stock price.

Bank of America is not the only financial stock that Berkshire has been selling. The conglomerate also cut its stake in Citigroup by more than 70% and reduced its Capital One Financial holdings by 18%.

New Investment in the Alcohol Industry

During the fourth quarter, Berkshire Hathaway acquired a relatively small stake in Constellation Brands, the alcoholic beverage producer. Regulatory filings reveal that the conglomerate held 5.6 million shares worth $1.2 billion at the end of 2024.

Following the disclosure of Berkshire’s new investment, Constellation Brands’ stock surged by more than 6%.

However, the company has been facing challenges recently, as high tariffs on Mexican imports, imposed by President Donald Trump, could significantly impact its business. Constellation imports all of its beer from Mexico, including the well-known brands Modelo and Corona. Beer alone accounts for 86% of the company’s revenue in the first half of the fiscal year. As a result, Constellation’s stock has dropped 26% since the beginning of the year.