Warren Buffett’s Berkshire Hathaway Shifts Portfolio, Betting on Constellation Brands and Expanding Key Stakes
Berkshire Hathaway (NYSE: BRK.A, BRK.B), led by legendary investor Warren Buffett, made significant changes to its investment portfolio in Q4 2024, including a new position in Constellation Brands (NYSE: STZ), the maker of Modelo and Corona beer. The firm also increased its holdings in Occidental Petroleum (NYSE: OXY), Domino’s Pizza (NYSE: DPZ), and Sirius XM (NASDAQ: SIRI) while trimming positions in major financial companies.
These moves, disclosed in Berkshire’s latest 13-F filing, provide insight into Buffett’s latest market strategy and where his firm sees value and opportunity.
Berkshire Hathaway Enters New Position in Constellation Brands
One of the most notable additions to Berkshire Hathaway’s portfolio was Constellation Brands, a leading beverage company known for its popular beer brands, including Modelo, Corona, and Pacifico.
📌 Berkshire purchased 5.6 million shares of Constellation Brands, worth approximately $1.24 billion at the end of 2024.
📌 Following the disclosure, Constellation Brands’ stock surged over 6% in extended trading on Friday.
This investment signals Berkshire’s confidence in the beverage and alcohol industry, particularly as Modelo continues to dominate U.S. beer sales, surpassing Bud Light in market share.
Berkshire Expands Stakes in Key Companies
In addition to Constellation Brands, Berkshire Hathaway increased its positions in several notable companies, deploying part of its $320 billion cash reserve into targeted investments.
1. Increased Stake in Occidental Petroleum (OXY)
📌 Berkshire added nearly 8.9 million shares of Occidental Petroleum in Q4 2024.
📌 A separate filing in February 2025 revealed further additions, bringing Berkshire’s total stake to 264.9 million shares.
Buffett has long been bullish on the energy sector, and his continued investment in Occidental Petroleum aligns with his belief in oil and gas as a critical component of the economy.
2. Nearly Doubled Investment in Domino’s Pizza (DPZ)
📌 Berkshire bought an additional 1.1 million shares of Domino’s Pizza, increasing its stake to about 6.9% of the company.
With continued global expansion and strong delivery sales, Domino’s remains one of the top-performing restaurant stocks, making it a long-term growth opportunity for Berkshire.
3. Boosted Position in Sirius XM (SIRI)
📌 Berkshire purchased over 12 million shares of Sirius XM, the leading satellite radio provider.
📌 This move suggests confidence in Sirius XM’s strong subscription-based revenue model, despite increasing competition from streaming services like Spotify and Apple Music.
4. Increased Holdings in VeriSign (VRSN) and Pool Corp. (POOL)
📌 Berkshire made a small addition to its stake in VeriSign, which manages domain names and internet security.
📌 It also upped its Pool Corp. stake by nearly 50%, now worth $200 million.
These strategic additions highlight Berkshire’s focus on infrastructure, technology, and long-term growth sectors.
Berkshire Hathaway Trims Financial Holdings and Exits Ulta Beauty
While Buffett’s firm increased positions in some stocks, it scaled back or completely exited several others.
1. Reduced Exposure to Financial Stocks
📌 Berkshire trimmed its stakes in Bank of America (NYSE: BAC), Capital One (NYSE: COF), and Citigroup (NYSE: C).
📌 The banking sector has faced challenges, including rising interest rates and regulatory pressures, which may have influenced Buffett’s decision to scale back financial holdings.
2. Full Exit from Ulta Beauty (ULTA)
📌 Berkshire exited its entire position in Ulta Beauty, just two quarters after entering the stock.
📌 This suggests that Buffett and his team did not see long-term value in the beauty retailer, opting instead to focus on core investments.
Despite Ulta’s strong consumer base, the retail and beauty sector has been facing shifting consumer spending habits, which may have led to this strategic exit.
No Further Apple (AAPL) Sales in Q4 2024
One major takeaway from the 13-F filing was that Berkshire did not sell any additional shares of Apple (NASDAQ: AAPL) in the final quarter of 2024.
📌 Apple remains Berkshire Hathaway’s largest holding, making up 28% of its portfolio, valued at over $75 billion.
📌 Earlier in 2024, Berkshire reduced its Apple stake significantly, citing valuation concerns.
📌 However, Buffett’s firm held steady in Q4, indicating renewed confidence or a pause in further selling.
Apple remains a dominant player in the tech sector, and despite recent challenges, its strong ecosystem and recurring revenue model make it a cornerstone investment for Berkshire.
What These Moves Reveal About Buffett’s Investment Strategy
Buffett’s Q4 2024 investment activity suggests several key themes in Berkshire Hathaway’s strategy:
📌 1. Targeting Consumer Staples and Subscription-Based Businesses
✔ Investments in Constellation Brands and Domino’s Pizza show a preference for strong, recession-resistant brands.
✔ The Sirius XM stake highlights Buffett’s confidence in subscription-based revenue models.
📌 2. Energy and Infrastructure Remain Key Priorities
✔ Occidental Petroleum remains a major holding, reinforcing Buffett’s bullish stance on energy.
✔ VeriSign’s internet security business aligns with long-term digital infrastructure trends.
📌 3. Reducing Exposure to Volatile Sectors
✔ The exit from Ulta Beauty and reduced stakes in financials suggest Berkshire is being cautious with discretionary spending and banking volatility.
📌 4. Holding Steady on Apple
✔ After selling Apple shares earlier in 2024, Berkshire paused further reductions, indicating confidence in the tech giant’s resilience.
Final Thoughts: Buffett’s Strategic Adjustments for 2025
With a record $320 billion cash reserve, Berkshire Hathaway remains well-positioned to make future strategic investments.
✔ New stakes in Constellation Brands, Sirius XM, and Domino’s Pizza highlight Buffett’s focus on strong consumer brands and subscription-based businesses.
✔ The continued investment in Occidental Petroleum suggests confidence in the energy sector, despite global shifts toward renewables.
✔ A reduced stake in financials and an exit from Ulta Beauty indicate a cautious approach toward market volatility.
✔ Berkshire holding steady on Apple suggests a balanced view on tech valuations.
As 2025 unfolds, investors will closely watch Buffett’s next moves, particularly whether he deploys more of Berkshire’s massive cash reserves into new opportunities.
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