Berkshire Hathaway Bets Big on Constellation Brands

Published 8 hours agoSTZ

Berkshire Hathaway Bets Big on Constellation Brands

Warren Buffett's Berkshire Hathaway has significantly upped its stake in beer giant Constellation Brands. In the last quarter of 2024, Berkshire acquired over 5.6 million shares of the company known for popular beers like Corona and Modelo, investing approximately $1.24 billion. This move makes Berkshire the sixth-largest shareholder in Constellation Brands, according to Seeking Alpha.

Simultaneously, Berkshire Hathaway has reshuffled its financial holdings, notably reducing its positions in the banking sector. Reuters reported that Buffett's firm fully exited its investments in Citigroup and Bank of America, signaling a strategic pivot. This news contributed to a notable 7.4% spike in Constellation Brands' stocks during after-hours trading, hitting $174.99 as investors reacted positively to the changes.

Constellation Brands, recognized for its strong portfolio of beer, wine, and spirits, continues to attract Berkshire's interest due to its robust fundamentals and potential for long-term growth. Aligning with Buffett's value investing philosophy, this latest purchase underscores the company's confidence in Constellation's market position and future prospects.

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