Warren Buffett’s Berkshire Hathaway invested $1.8 billion last quarter in seven stocks, with one company showing especially strong value, according to recent filings.
Buffett has found fewer attractive large-cap stocks in recent years. Berkshire put only $3.2 billion into equities in the first quarter of 2025, leaving about $347 billion in cash and Treasury bills.
Part of the investment was in an undisclosed stock exempt from disclosure rules, while the rest went into seven known companies.
The seven stocks Buffett bought include Heico, Verisign, Sirius XM, Pool Corp., Domino’s Pizza, Constellation Brands, and Occidental Petroleum. Among these, Constellation Brands stands out as a particularly good value for investors right now.
Constellation Brands owns popular beer brands like Corona and Modelo, dominating the U.S. Mexican beer market with over 90% market share.
Despite challenges such as tariffs on Mexican imports and a decline in overall alcohol consumption, the company is refocusing on high-end brands and expects steady sales growth and margin expansion over the next few years.
Buffett’s Berkshire Hathaway has increased its stake in Constellation to about 12 million shares worth $2.2 billion, representing 6.6% ownership.
The company is expected to generate $6 billion to $7 billion in free cash flow over the next three years and plans significant share buybacks, which could boost stock value.
While Buffett remains cautious about many large stocks, his investment in Constellation Brands reflects confidence in the company’s strong fundamentals and long-term growth potential.
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