Vardah Gill
2 min read
In This Article:
Berkshire Hathaway's most recent 13-F filing shows a strategic shift in its investment portfolio. The firm doubled its position in Constellation Brands—the US distributor of Modelo and Corona beers—while completely exiting its $1 billion stake in Citigroup Inc. (NYSE:C), a holding it had maintained for three years. Moreover, Berkshire reduced its exposure to other financial firms, including Bank of America and Capital One Financial.
The filing, which covers the quarter ending in March, also revealed that Berkshire’s overall stock portfolio declined by 3%, settling at $258.7 billion. This drop largely reflects its decision to pull back from several key financial stocks.
Berkshire Hathaway’s quarterly portfolio filings don’t specify who is responsible for each stock transaction—whether it’s Warren Buffett, portfolio managers Todd Combs and Ted Weschler, or Greg Abel, who’s set to take over as CEO. Typically, Combs and Weschler manage the smaller investments, while Buffett has increasingly entrusted Greg Abel with more decisions related to capital allocation.
Citigroup Inc. (NYSE:C) had a place in Buffett’s portfolio due to its appealing valuation and consistent dividend track record. With a forward price-to-earnings ratio of 10.30, the stock appears to be trading below its intrinsic value. In addition, it has been paying regular dividends to shareholders for the past 34 years. Currently, it pays a quarterly dividend of $0.56 per share and has a dividend yield of 2.96%, as of May 18. The stock has surged by nearly 20% in the past 12 months.
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