Warren Buffett's Berkshire Hathaway bought Constellation Brands for the first time in the final quarter of 2024 while exiting Ulta Beauty, after owning the Sephora rival for just a few quarters. Constellation Brands stock popped nearly 4% in Monday trading, rallying off multiyear lows.
The Buffett-led conglomerate also dumped minor holdings in the Vanguard S&P 500 and SPDR S&P 500 exchange traded funds last quarter.
Berkshire Buys Constellation Brands, STZ Stock Jumps
In Q4, Buffett bought Constellation stock, which owns the Corona and Modelo beer brands, as shares declined over the quarter, a 13F filing showed late Friday. STZ stock proceeded to plunge a further 18% in January amid an alcohol warning by Surgeon General Dr. Vivek Murthy.
That headwind may ease under a new Donald Trump administration. But there are several other challenges facing this S&P 500 laggard. Bill Stone of Glenview Trust, a longtime Buffett watcher, wrote in a note to clients on Monday: "In January, the company reported worse-than-expected quarterly earnings and lowered its outlook for the year. Potential tariffs on Mexico could negatively impact its Mexican beer earnings. In addition, there are fears that the GLP-1 diet drugs and a growing preference for cannabis could weigh on the long-term outlook of its alcohol brands."
"On the other hand," Stone added, "the stock is now selling for a multiyear low in valuation across several metrics."
Constellation stock plumbed new four-year-plus lows last week. It perked up on Monday following news about the Buffett buy.
Warren Buffett's Q4 Buys And Sells
Among other key Q4 moves, Berkshire Hathaway grew stakes in Pool and Domino's Pizza, a 13F filing showed late Friday. But Berkshire also cut positions in many other stocks, notably Citigroup and Nu Holdings.
Previous filings had already revealed that Berkshire further sold down Bank of America in Q4, while growing positions in Occidental Petroleum, VeriSign and Sirius XM.
Berkshire Hathaway made those stock trades during a sharp December sell-off. Buffett has been a net seller of stocks for several quarters due to what he sees as steep prices.
Keeping Steady On Apple, Chevron
In Q4, the conglomerate maintained its stake in Apple after a series of quarterly cuts. It also held steady on Chevron, after cuts in two quarters last year.
In 2024, Berkshire sold Apple stock, its largest holding by market value, in each of the first three quarters. Including Q4 2023, Berkshire had dumped the iPhone maker for four straight quarters.
Apple remains among Berkshire's biggest holdings after hefty cuts. Buffett still owns 300 million shares.
New Buys In Berkshire Hathaway Stock Portfolio
Constellation Brands adds to a stable of new stock purchases by Buffett and his investing team. In 2024, Berkshire Hathaway opened stakes in Heico, Pool, Chubb and Domino's Pizza as well.
Investors track Berkshire's equity portfolio because of its superior long-term returns. Though Warren Buffett tends to hold stocks for years or even decades, Berkshire's portfolio has turned over more of late.
Class B shares of Berkshire Hathaway edged up on the stock market today. Berkshire stock is nearing a 491.67 cup-shape buy point, just 2% below the entry. It has made little progress since last September.
It is up 6.4% so far this year.
