Warren Buffett Just Added $1 Billion Worth of This Beaten-Down Value Stock to Berkshire Hathaway's Portfolio
It says a lot about what Buffett thinks of the stock market right now.
Warren Buffett didn't see a lot to like in the stock market in 2024. The head of Berkshire Hathaway sold over $134 billion worth of equities from the holding company's portfolio last year. The fourth quarter saw massive sales of bank stocks, including 15% of Berkshire's substantial stake in Bank of America, 73% of its stake in Citigroup, and 18% of its shares of Capital One Financial. Buffett even sold Berkshire Hathaway's stake in two S&P 500 index funds last quarter.
While Buffett's mostly been a seller in the current market, he still sees a few opportunities. Last quarter, he put over $1 billion to work in a company whose stock looks like a great value. The stock slid further in January, following a disappointing earnings report from the business, which could make an even better buy right now than Buffett's earlier purchase.
Here's why Buffett likely bought $1 billion worth of Constellation Brands (NYSE: STZ), and how it reflects his recent opinion about the stock market's current behavior.
