Warren Buffett’s Berkshire Hathaway Reveals Q1 2025 Holdings: Reduced Bank Investments and Increased Consumer Stocks, with Mysterious Holdings Drawing Attention
(Background: Buffett admits he feels old, finds thinking and reading increasingly difficult… first discusses his decision to step down as CEO of Berkshire Hathaway)
(Supplementary Background: Buffett previously invested in Brazil’s crypto-friendly bank Nu Holdings, with Berkshire’s holdings reaching $1.2 billion)
Buffett Adjusts Financial Stock Positions, Liquidating Citigroup Raises Eyebrows
This week, Warren Buffett’s Berkshire Hathaway submitted its 13F report for the first quarter of 2025, disclosing its holdings as of the end of March 2025, garnering global market attention. The latest report indicates that Berkshire made significant adjustments to its investment portfolio in the first quarter, particularly adopting a notable reduction strategy in financial stocks. The most striking move was the complete liquidation of its entire stake in Citigroup, involving the sale of 14.639 million shares.
Simultaneously, Berkshire reduced its holdings in Bank of America by a total of 48.66 million shares, representing a decrease of over 7%, and also reduced its stake in Capital One Financial Corporation by 300,000 shares, a reduction of about 4%. This series of divestitures reflects Berkshire’s prudent strategy of continuing to withdraw investments from certain financial institutions in the current market environment, which may relate to assessments of future profitability or risk exposure in the financial sector. However, Bank of America remains one of Berkshire’s core heavy holdings, with more than 631.5 million shares still held at the end of the first quarter.
Countercyclical Increase in Consumer Stocks, Beverage Brands Favored
In contrast to the conservative approach to financial stocks, Berkshire exhibited an active increase in specific consumer goods stocks in the first quarter of 2025. Report data indicates that the most purchased stock for Berkshire during this quarter was Constellation Brands Inc., a beer and spirits manufacturer, with a significant acquisition of up to 6.384 million shares, causing its total holdings to surge over 113% to 12.009 million shares, valued at approximately $2.2 billion, representing 6.6% of Constellation Brands.
In addition to the substantial investment in Constellation Brands, Berkshire also slightly increased its stake in pool equipment and supply provider Pool Corp (POOL). These increases clearly reveal that Berkshire’s investment strategy is shifting toward consumer brands with stable cash flows and brand moats, reflecting a preference for defensive assets during uncertain economic times. (Is the public turning to alcohol to cope with economic downturns?)
However, despite these adjustments, Berkshire’s core heavy holdings still include its long-favored companies, such as technology giant Apple, American Express, Coca-Cola, the aforementioned Bank of America, and energy giant Chevron.
For detailed holdings, visit: Berkshire Hathaway Investment Portfolio Holdings
Mysterious Confidential Holdings Spark High Market Interest
Additionally, the most intriguing aspect of this 13F report is that Berkshire once again submitted a confidentiality request to the U.S. Securities and Exchange Commission (SEC), asking to delay the disclosure of specific details regarding one or more stock investments. This strategy of using confidentiality requests to avoid prematurely disclosing sensitive investment details is a common practice for Berkshire during the accumulation phase, allowing the company to gradually build positions in target companies without causing excessive market fluctuations.
In reviewing past instances, it is noted that Berkshire employed similar confidentiality measures during its significant accumulation of insurance giant Chubb, with related holding information not officially disclosed until May 2024.
Market analysts estimate that this mysterious new position could be valued between $1 billion and $2 billion, with widespread speculation that it may belong to the commercial services or industrial manufacturing sectors, igniting investor discussions.
Substantial Cash Reserves and Future Outlook
In addition to the adjustments in holdings, Berkshire’s overall financial condition is also noteworthy. As of the end of the first quarter, Berkshire’s cash and cash equivalents had risen to a record $348 billion. Such a substantial cash reserve has led the market to continually speculate on when and in what sectors Buffett and his team will deploy the next round of large-scale investments.
At the same time, a turning point in an era is approaching. Buffett personally announced at this month’s Berkshire annual shareholders meeting that he plans to officially step down as CEO of Berkshire at the end of 2025, a position he has held for 60 years, passing the reins to the designated successor, Greg Abel. Buffett will continue to participate in company affairs as chairman.
This significant leadership transition, along with the new CEO’s investment style and decision-making process, will undoubtedly add a new dimension of observation for the market regarding how it may impact Berkshire’s future investment direction and performance.
Further Reading: Who is Greg Abel, Buffett’s Designated Successor at Berkshire? What are his views on cryptocurrency?
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Buffett’s Latest Shareholder Letter “Said Nothing About Cryptocurrency”! Cash Reserves Hit New High, But Emphasizes Preference for Stock Investments
Who is Greg Abel, Buffett’s Designated Successor at Berkshire? What are his views on cryptocurrency?