Warren Buffett’s Berkshire Hathaway has more than doubled its holding in Constellation Brands, lifting the position to roughly 12 million shares worth $2.2 billion.
The purchase raises Berkshire’s ownership to 6.6 percent of the brewer and vintner behind Corona, Modelo Especial, Robert Mondavi, and Meiomi.
Constellation’s stock gained 2.7 percent in after-hours trading following the disclosure.
Pullback from Financials
The same regulatory filing shows Berkshire exited its three-year-old stake in Citigroup and no longer reports any shares of Brazilian fintech outfit Nubank.
It also pared its giant holding in Bank of America to 632 million shares and trimmed Capital One, even as that lender moves to acquire Discover Financial Services.
Collectively, the moves mark Berkshire’s tenth consecutive quarter as a net seller of equities.
Between January and March, it bought $3.18 billion of stock and sold $4.68 billion.
Confidential Purchases and Strategy
Thursday’s filing notes that the SEC allowed Berkshire to keep at least one position confidential, shielding the trade until buying concludes.
Berkshire has previously sought similar treatment while amassing stakes in Chevron, Chubb, and other blue-chips to avoid tipping off the market.
Cash Pile and Philosophy
The conglomerate ended March with a record $347.7 billion in cash and equivalents.
At Berkshire’s annual meeting on May 3, Buffett explained the cash mountain.
“We would rather have conditions that are developed where we would have like $50 billion” in cash, he said.
“But that just isn’t the way the business works.
We have made a lot of money by not wanting to be fully invested at all times.”
Investors often interpret the company’s trades as a barometer of Buffett’s outlook, so the hefty Constellation purchase is drawing particular interest.
Leadership Transition
Portfolio decisions are not attributed individually, but Buffett has delegated more capital allocation to vice-chair Greg Abel, who is slated to become CEO on January 1, 2026.
Todd Combs and Ted Weschler handle smaller positions, while Buffett still oversees major moves.
Beyond its stock portfolio, Berkshire owns almost 200 operating companies, from Geico insurance to the BNSF railroad, giving management flexibility to shift capital as opportunities arise.