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Catalysts host Seana Smith analyzes Warren Buffett's Berkshire Hathaway (BRK-A, BRK-B) portfolio adjustments, examining the company's stock purchases and sales in the fourth quarter of 2024. This comes as investors await Berkshire's annual letter to shareholders.
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This post was written by Angel Smith
Warren Buffett's cash pile has hit record levels as the Oracle of Omaha trims some of his oldest bets and also makes a surprising new one. Let's take a look at some of the changes made to Berkshire's portfolio this past quarter. First up, constellation brands. Now, it is a brand new play for Berkshire. The company is scooping up a $1.2 billion stake. That makes it the company's sixth largest shareholder of the beer and liquor giant. And this is a classic Buffett value play, the stock trading at just 10 times earnings, its lowest in more than a decade. And Buffett's buying, well, did not stop there. He also added to his positions in Domino's, in Occidental, Pool Corp, Sirius XM, as well as Verizon. But it wasn't all buying. Buffett did raise some cash during the quarter. He scaled back his exposure, some of the big banks, including Bank of America, Capital One, and also Citigroup. Citigroup was actually the largest cut of the quarter for Berkshire Hathaway. They reduced their stake by more than 70%. He also trimmed some of his holdings in Charter Communications, in T-Mobile, Louisiana Pacific, and New Holdings. And Berkshire did fully exit one of their positions, and that is Ulta Beauty, selling out completely after a very short-lived investment.
