Berkshire Hathaway Dumps Ulta Beauty, Citi, And ETFs – But Buffett Just Bet $1.2 Billion On This Alcohol Giant - Bank of America (NYSE:BAC), Citigroup (NYSE:C)

Warren Buffett's Berkshire Hathaway (NYSE:BRK, BRK.B)) made some big moves in the last quarter, shifting its investments in response to changing market conditions.

A regulatory filing released on Feb. 14, showed that Berkshire slashed its stake in Bank of America (NYSE:BAC), cutting its shares from over 1 billion to about 680 million by the end of last year. The drop reduced Berkshire's ownership from over 13% to 11%, bringing the value of the investment from about $41 billion to under $30 billion.

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Strategic Portfolio Adjustments

Beyond Bank of America, Berkshire adjusted several other financial holdings. According to the filing, the firm sold 74% of its Citigroup (NYSE:C) stake, 18% of its Capital One (NYSE:COF) position, and 54% of its shares in Nu Holdings (NYSE:NU).

It also trimmed investments in Charter Communications (NASDAQ:CHTR), Louisiana-Pacific (NYSE:LPX), and T-Mobile US (NASDAQ:TMUS). The changes indicate a move away from financial stocks and select industries.

At the same time, Berkshire made a notable addition, buying a $1.2 billion stake in Constellation Brands (NYSE:STZ), the company behind popular beers like Corona and Modelo. As per market trends, consumer staples tend to hold up well in uncertain economic times, making this a strategic shift toward more stable investments.

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Berkshire also increased its holdings in companies tied to steady consumer demand. Its stake in Domino's Pizza (NYSE:DPZ) grew by 86%, and its investment in Pool Corporation (NASDAQ:POOL) jumped by 48%.

These moves suggest confidence in businesses that remain relevant regardless of market conditions—whether people are tightening their budgets or not, they still order pizza and maintain their pools.

Not all holdings made the cut. Berkshire fully exited Ulta Beauty (NASDAQ:ULTA) despite only acquiring shares in the second quarter of 2024.

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It also sold off its positions in two major exchange-traded funds (ETFs) that track the S&P 500—SPDR S&P 500 ETF Trust (NYSE:SPY) and Vanguard S&P 500 ETF (NYSE:VOO). This suggests a more targeted approach rather than following the broader market.

Berkshire's cash pile has reached record levels. According to its financial reports, the company sold about $133 billion worth of stocks in the first nine months of 2024 while buying less than $6 billion.

Share buybacks also slowed, with under $3 billion spent compared to nearly $70 billion over the previous four years, according to Business Insider. These moves helped Berkshire's cash reserves soar past $300 billion for the first time, nearly doubling from $168 billion at the start of the year, the report added.

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