Berkshire Hathaway Buys Constellation Brands, Sells Citigroup, Bank of America

Warren Buffett's Berkshire Hathaway has made headlines by acquiring a new position in Constellation Brands, purchasing 5.62 million shares worth $1.24 billion during the fourth quarter of 2024. This investment comes as a significant vote of confidence for Constellation, which has seen its stock decline 32% over the past year amid changing consumption trends. Concurrently, Berkshire reduced its stakes in Citigroup by 74% and Bank of America by 15%, reflecting a shift in Buffett's outlook on the banking sector following recent industry challenges. Additionally, Berkshire maintained its substantial investment in Apple, holding 300 million shares unchanged from previous quarters. The news of Buffett's investment in Constellation led to a 7% surge in the company's stock price. Analysts have noted the potential risks for Constellation due to tariffs affecting its Mexican imports, which could impact its profitability if not managed carefully.