Warren Buffett did not see much liked the stock market in 2024. President Berkshire Hathaway More than $ 134 billion of stocks were sold from the Holding Company’s portfolio last year. The fourth quarter witnessed huge sales of bank shares, including 15 % of Berkshire’s large share in Bank of America73 % of its share in CitigroupAnd 18 % of its shares Financial capital. He sold Buffett until the Hathaway Berkshire’s share in two S & P 500 Feard of the last quarter boxes.
While Puffett was mostly a seller in the current market, he still sees some opportunities. In the last quarter, he put more than a billion dollars to work in a company whose shares look of great value. The shares slipped in January, after a disappointing profit report from the company, which could make buying better now than the previous Pavite purchase.
This is why Pavite has probably bought one billion dollars from Type brands(NYSE: STZ)And how he reflects his last opinion about the behavior of the current stock market.
Photo source: Motley deception.
Constellation Brands is the largest beer of Mexican beer, including the best -selling brands like Corona and Modelo. It also owns a company for wine and spirits, but the strength of its brand in this category is practically not present compared to beer. Fortunately, beer works represent more than 80 % of sales and operational income.
While the alcohol industry faces the opposite winds for people who drink less, especially between Gen Z, Constellation managed this trend with strong sales growth for beer business. A mixture of size and price mixture should lead to the growth of revenue between 4 % and 7 % to finish the year 2025 in February. This is thanks to its strong commercial brands and product innovations such as Modelo Chelada and Auguas Frescas to combat increasingly common products such as ready -made cocktails for drinking and solid Seltzer.
Constellation also benefited from its scope, as it reached 94 % of the dollars spent on the Mexican beer in the United States and which is given a large advertising budget, which is used to improve its brands and put it as more installment options. It enabled it to constantly raise prices and maintain its share in the huge market.
However, the possibility of definitions is a possible threat to the constellation. A 25 % tax on Mexican imports would significantly drop their prices for distributors in order to maintain size. Moreover, the entire alcohol industry faces the potential downside of warning stickers on the packaging with reference to the health risks of drinking, as suggested by the American surgeon.
The strong brands of Constellenge, their “Excellence” strategy, and customer loyalty should enable them to move in these challenges better than others.
The Buffett Investment Strategy is simple as buying shares when you trade without its fundamental value, making sure that you have a safety margin, then the stock is expected to reflect more accurately the fundamental value of the company. In other words, Constellenge brands look good.
The famous investor bought shares of stocks before the profit report in the third quarter of the constellation, which was very disappointing. The revenue was flat for this year, as a slight increase of 3 % in beer sales was completely compensated by a 14 % decrease in wine sales and spiritual drinks. The administration has reduced its expectations for the entire year as a result, also indicating uncertainty about the California market and the potential impact of definitions.
But the sale seems exaggerated at this stage. The updated expectations of the administration are still calling for 10 % growth of profits in the fiscal year 2025. Moreover, the administration has proven to be able to outperform the total market and increase beer sales even with the rest of the industry remaining over the past decade. Through beer now, the vast majority of sales, wine and spiritual drinks will be a preposition in revenues and profits forward.
The stock shares are traded to the price of the wealthy (P/E). This is an exceptional value of the company with the competitive advantages of the constellation.
The last thing to be noticed about Pavite’s investment in constellation brands. The stock currently enjoys the marketing of the market about 32 billion dollars. This puts the company’s size in line with other purchases of Buffett in the last quarter: Domino pizza (The maximum market of $ 16 billion), Pool Corp (13.1 billion dollars), Sirius XM (8.4 billion dollars), and Verisign (21.9 billion dollars).
When you compare this to large stock sales in the last quarter – Bank of America ($ 341 billion), City Group ($ 150 billion), capital ($ 76 billion) – Pavite shows a clear preference for smaller companies. Even his decision to get rid of the S&P 500 index in Berkshire’s wallet indicates the possibility of concern about the assessments of the largest companies that dominate the index.
Therefore, while Pavite was selling a lot of shares from the largest companies, he found value in smaller companies. For Berkshire, with hundreds of billions in order to invest in investment, its value may range between 10 billion dollars and 40 billion dollars. For the individual investor, Constellation may also be a great arrow for purchase, and those who want to conduct research may find more opportunities between small and medium stocks.
Before purchasing stock brands, consider this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Constellenge brands were not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 804,553 dollars!
Now, it is worth notingStock consultantAverage overall return904 %-Surprisingly in the market compared to173 %For S&P 500. Don’t miss the latest 10 best list, available when joiningStock consultant.
See the ten stocks »
*The stock consultant dates back from February 24, 2025
Citigroup is an advertising partner for Motley Fool Money. Bank of America is an advertising partner in Motley Fool Money. Adam Levy has no position in any of the mentioned shares. Motley Fool has positions in the Bank of America, recommends it and Perkchire Hathaway, Pizza’s Domino, and Verisign. Motley recommends a liar for the constellation. Motley Fool has a disclosure policy.
Warren Buffett has just added $ 1 billion of this shares that were struck at the Hathaway Berkchire Portfolio originally by Motley Fool.
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