Buffett cuts bank stocks and keeps Apple as Berkshire's cash rise
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Apple Remains Untouched While Banking Stocks Get the Axe
Warren Buffett’s Berkshire Hathaway (BRK.A) made some big moves in Q4, trimming stakes in Bank of America (BAC) and Citigroup (C) while maintaining its massive 300 million-share position in Apple (AAPL), worth around $75 billion. The cuts were significant—BofA was reduced by 15% to 680 million shares, while Citigroup saw a staggering 75% reduction ($2.4 billion), leaving Berkshire with just 14.6 million shares. Buffett’s long-standing caution toward financials amid macroeconomic uncertainty suggests concerns about rate-sensitive sectors and potential economic slowdowns impacting big banks. However, his unwavering commitment to Apple underscores its role as Berkshire’s anchor investment, continuing to be the largest single-stock position in the portfolio.
New Addition: A Bet on Alcohol with Constellation Brands (STZ)
Berkshire’s only new stock addition in Q4 was a 5.6 million-share stake in Constellation Brands (STZ), worth over $1.2 billion. This bet on the booze giant comes at an interesting time, as STZ shares had dropped 26% in early 2025 following weak earnings. The stock rallied 7% after the disclosure, but whether this is a strategic long-term play or a short-term opportunistic buy remains to be seen.
Berkshire’s Cash Pile Grows Even Bigger
With limited new stock additions and major banking divestments, Berkshire likely added billions to its already massive cash reserve, which stood at $325 billion at the end of Q3 2024. All eyes will be on February 22, when Berkshire releases its full-year earnings report, revealing its updated cash position and any further strategic shifts. If Buffett continues hoarding cash, it could indicate a more cautious stance toward market valuations and economic conditions heading into 2025.
Market Implications: Is Buffett Signaling a Defensive Shift?
Reducing exposure to banks suggests a concern over financial sector risks, possibly related to higher-for-longer interest rates or economic slowdown fears. Apple remains a core holding, reinforcing Buffett’s belief in strong cash flow businesses with pricing power amid uncertain macro conditions. The cash pile’s next move will be key—if Berkshire continues sitting on record liquidity, it may indicate a lack of compelling investment opportunities at current market valuations.
Warren Buffett’s Berkshire Hathaway (BRK.A) made some big moves in Q4, trimming stakes in Bank of America (BAC) and Citigroup (C) while maintaining its massive 300 million-share position in Apple (AAPL), worth around $75 billion. The cuts were significant—BofA was reduced by 15% to 680 million shares, while Citigroup saw a staggering 75% reduction ($2.4 billion), leaving Berkshire with just 14.6 million shares. Buffett’s long-standing caution toward financials amid macroeconomic uncertainty suggests concerns about rate-sensitive sectors and potential economic slowdowns impacting big banks. However, his unwavering commitment to Apple underscores its role as Berkshire’s anchor investment, continuing to be the largest single-stock position in the portfolio.
New Addition: A Bet on Alcohol with Constellation Brands (STZ)
Berkshire’s only new stock addition in Q4 was a 5.6 million-share stake in Constellation Brands (STZ), worth over $1.2 billion. This bet on the booze giant comes at an interesting time, as STZ shares had dropped 26% in early 2025 following weak earnings. The stock rallied 7% after the disclosure, but whether this is a strategic long-term play or a short-term opportunistic buy remains to be seen.
Berkshire’s Cash Pile Grows Even Bigger
With limited new stock additions and major banking divestments, Berkshire likely added billions to its already massive cash reserve, which stood at $325 billion at the end of Q3 2024. All eyes will be on February 22, when Berkshire releases its full-year earnings report, revealing its updated cash position and any further strategic shifts. If Buffett continues hoarding cash, it could indicate a more cautious stance toward market valuations and economic conditions heading into 2025.
Market Implications: Is Buffett Signaling a Defensive Shift?
Reducing exposure to banks suggests a concern over financial sector risks, possibly related to higher-for-longer interest rates or economic slowdown fears. Apple remains a core holding, reinforcing Buffett’s belief in strong cash flow businesses with pricing power amid uncertain macro conditions. The cash pile’s next move will be key—if Berkshire continues sitting on record liquidity, it may indicate a lack of compelling investment opportunities at current market valuations.