Investing

Warren Buffett Drops His Investments, And There Was Another Surprise For Those Who Paid Attention

Austin Smith

Published: February 20, 2025 12:47 pm

24/7 Wall St. Key Points:

• Berkshire Hathaway (NYSE: BRK.A, BRK.B) added 5.6 million shares of Constellation Brands (NYSE: STZ), significantly increasing its stake in the liquor company.
• Consumer trends show younger generations shifting from beer to spirits, particularly bourbon and cocktails, which may support long-term growth in premium alcohol brands.
• Other liquor stocks, such as Brown-Forman (NYSE: BF.B), could be worth watching as Buffett’s move signals confidence in the sector’s resilience.
• A quick conversation with a financial advisor can help you unpack your savings, spending, and goals for your money. With SmartAsset’s free tool, you can connect with vetted financial advisors in minutes. (Sponsor)

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Transcript:

[00:00:04] Doug McIntyre: So Warren Buffett releases his, quarterly holdings at Berkshire for the final quarter of the year.

[00:00:11] Doug McIntyre: Right. And he’s moved into a sin stock. How does, how’s that worked out?

[00:00:15] Lee Jackson: Well, yeah. I mean, he’s, he’s always been a fan of certain items and, and for years he’s owned a smaller position in Constellation symbol STZ, which is a big, big, they make Guinness, they make a ton of spirits, and, but this time, the thing that I thought was interesting this time, Doug, is he kind of, he kind of stepped up the bid on this, let me just double check this.

[00:00:42] Lee Jackson: He bought 5.6 million shares of the stock, and I think we mentioned this before he added to Domino’s (NASDAQ: DPZ) and Pool Corp (NASDAQ: POOL) and as usual Occidental (NYSE: OXY) but this is a big addition for him. Because he didn’t, and I’d have to look back at what it was and it’s probably already been factored in, but it wasn’t a huge position for him.

[00:01:04] Lee Jackson: It was certainly wasn’t much more than say 1 percent at that of the portfolio. So, yeah, he’s making a big move into the sin stock.

[00:01:15] Doug McIntyre: Now, it’s a sign that, maybe liquor stocks are something people should look at.

[00:01:21] Lee Jackson: Well, it’s been interesting, the younger, the Gen Zers. From everything I’ve read, they’re not consuming near the beer, the Gen X and the Boomers did, and they’re much bigger on the cocktail.

[00:01:33] Lee Jackson: They like, bourbon is incredibly popular down here and, and I’m sure in most other places, the Old Fashioned, which was a old school drink from back in the day, it’s like the most popular drink now. And there’s 8,000 brands of bourbon in every store I go into. So maybe he sees that. And I know that the Constellation has a pretty good presence in scotch and bourbon. In addition to Guinness and some other pretty big names.

[00:02:01] Lee Jackson: And I thought it w see him because stars are, Constellation is not cheap. It isn’t a $10 stock. Buying five or six million shares is that’s pretty hefty pick up considering he hasn’t been buying anything.

[00:02:17] Doug McIntyre: No, well, I think people ought to eyeball, you know Anything that’s in liquor or the related industries because when warren Buffett moves into something it’s obviously.. He’s done a lot of homework.

[00:02:28] Lee Jackson: Yeah. Well, and another stock that we’ve written about for years at 24/7 Wall Street is Brown-Forman and that symbol BFB and it’s cheap with a big dividend and they have a ton of brands. So yeah, I think that’s good advice to our viewers to check out the big booze guys. Please trust me when things get, the one thing that never goes out of style is, is drinking.

[00:02:53] Lee Jackson: And, and when, if the times get tough, it’s even more in style. Just remember Covid.