Berkshire Hathaway Shakes Up Wall Street with Strategic Move
These portfolio adjustments come as Buffett prepares to step down as CEO later this year, passing the torch to Vice Chairman Greg Abel.
Quick overview
- Berkshire Hathaway significantly increased its stake in Constellation Brands, nearly doubling its holdings to almost 12 million shares valued at approximately $2.2 billion.
- The firm exited its position in Citigroup entirely and reduced its stake in Bank of America, while also selling off its investment in Brazilian fintech Nubank.
- Nubank reported strong financial performance with a 47% increase in net income for Q1 2025, but Berkshire's exit was part of a broader strategy to boost liquidity rather than a reflection of the company's fundamentals.
- These portfolio adjustments come as Warren Buffett prepares to step down as CEO, with Apple remaining Berkshire's top holding.
Warren Buffett’s conglomerate, Berkshire Hathaway, significantly increased its stake in Constellation Brands—the beverage giant behind Corona and Modelo—during the first quarter of 2025.
The firm nearly doubled its holdings, jumping from 5.6 million to almost 12 million shares. That stake is now valued at approximately $2.2 billion, representing a 6.6% ownership in the company.
This move is part of a broader strategic shift. Berkshire exited its position in Citigroup entirely, reduced its stake in Bank of America by 48.6 million shares (now holding 631 million), and sold off its investment in Brazilian fintech Nubank. It also trimmed its exposure to Capital One Financial.
Far Away From Banks
What’s notable about the Nubank exit is that it wasn’t driven by poor performance. In fact, Nubank is currently enjoying its strongest financial period since going public.
In Q1 2025, the digital bank reported net income of $557.2 million—a 47% increase from the same quarter last year. Adjusted earnings rose 37%, and for full-year 2024, Nubank posted $1.97 billion in net profit, up 91% from 2023.
Nubank has also become one of Brazil’s most active digital banks in the crypto space. Through its app, users can trade Bitcoin, Ethereum, XRP, and other digital assets. In 2022, the company allocated 1% of its net assets to Bitcoin—an ironic twist, given Buffett’s long-standing public criticism of cryptocurrencies.
Berkshire’s exit from Nubank aligns with its broader retreat from the financial sector and a strategy to boost liquidity. The decision wasn’t about fundamentals, but rather Buffett’s cautious stance on financial institutions—regardless of their current strength.
These portfolio adjustments come as Buffett prepares to step down as CEO later this year, passing the torch to Vice Chairman Greg Abel. Despite the reshuffling, Apple remains Berkshire’s top holding, with 300 million shares valued at $66.6 billion.
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