OMAHA, Neb.–Credit union CFOs have no shortage of economists, analysts and other tea leaves to choose from when it comes to forecasts about the economic future—and a new move by Berkshire Hathaway and its famed CEO—Warren Buffett—now offers another.
Berkshire Hathaway has sold big stakes in two major banks while making an investment in the alcohol business.
Buffett, 94, the so-called Oracle of Omaha who has recently announced he is retiring, oversaw an average annual return was about 19.8% from 1965 to 2023.
Whether indicative of a trend the company sees or not, its latest 13-F filing with the Securities and Exchange Commission reveals it bearish on the banking sector and bullish on alcohol.
In With the Booze, Out With the Banks
Buffett has increased his stake in Constellation Brands STZ — the brewer behind Corona, Modelo, Robert Mondavi, and other alcohol brands — to more than 12 million shares, more than double the 5.6 million initial shares it bought at the end of the year.
To pay for the purchase, Berkshire slashed its exposure to the banking sector, exiting its three-year-old stake in Citigroup, selling the more than 14.6 million shares it held during the first three months of the year. It also cut its long-term holding Bank of America by 48.6 million shares and trimmed its Capital One holding by just 300,000 shares.
