Warren Buffett’s Berkshire Hathaway is reportedly amassing a secret stock position, with regulators granting the conglomerate special permission to keep its intentions undisclosed for now, according to a recent regulatory filing. This strategic move allows Berkshire to mitigate volatility while it gradually builds its new stake, echoing its approach last year when it quietly acquired a stake in Chubb.
Berkshire’s equity portfolio is a massive $275 billion, meaning any new investment could require billions to truly impact its returns. This process could span months as the firm accumulates shares discreetly. In a notable shift, Berkshire has also been offloading its investments in bank stocks. As of March, the Omaha-based company exited its entire position in Citigroup, which had been valued at over $1 billion at the end of 2024, having first bought shares in early 2022. Furthermore, Berkshire continued to reduce its investment in Bank of America for the third consecutive quarter, now holding 631.6 million shares worth approximately $26 billion, solidifying its status as the fourth-largest equity holding in Berkshire’s portfolio.
On a more positive front, Berkshire significantly increased its stake in Constellation Brands, the beer and wine producer, doubling its investment to about $2.2 billion last quarter. This comes as Constellation faces challenges due to President Trump’s implementation of steep tariffs on Mexican imports, as the company sources all of its beer—including popular brands like Modelo and Corona—from Mexico. Despite these hurdles, beer sales constituted a staggering 86% of Constellation’s revenue in the first half of its fiscal year, even as the stock has seen a decline of around 14% this year.
Amid these shifts, Berkshire has kept a close watch on its high-profile stake in Apple, maintaining its substantial holding of 300 million shares. Buffett’s decision last year to divest two-thirds of this tech investment drew considerable attention, but Apple remains by far the largest individual stake in Berkshire’s portfolio, valued at nearly $67 billion.
As these strategic moves unfold, Buffett, who will transition from his position as CEO of Berkshire at the age of 94, is set to hand over leadership to Greg Abel in early 2026. Nonetheless, Buffett will continue to serve as chairman of the board, maintaining a significant influence over the conglomerate’s future direction.
In summary, as Berkshire Hathaway navigates this complex investment landscape, it reflects the adaptive strategies characteristic of Buffett’s long tenure. Whether it’s quietly building new positions or offloading past investments, the moves signal both the challenges and opportunities inherent in today’s market environment. As the company prepares for its next chapter under new leadership, all eyes will remain on Berkshire’s strategic decisions as they unfold.
Original Source: https://www.cnbc.com/2025/05/15/buffett-exits-citigroup-and-doubles-stake-in-constellation-brands.html
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Publish Date: 2025-05-16 03:40:00
