Berkshire cuts bank stocks in Q1, clears Citi, Apple's holdings remain unchanged, beer manufacturers' holdings double, and confidential positions are deposited

Source: Wall Street News

According to regulatory filings submitted to the U.S. Securities and Exchange Commission (SEC) on Thursday, Warren Buffett’s Berkshire Hathaway cleared its entire position in Citigroup, reduced holdings in Bank of America and Capital One Financial Corp. during the first quarter, while maintaining major stakes in Apple, American Express, Coca-Cola, Bank of America, and Chevron.  

### Reducing Bank Stocks, Exiting Citigroup, and Doubling Beer Manufacturer Holdings  

In its 13F filing, Berkshire disclosed selling 14,639,502 shares of Citigroup. The filing also showed the company sold 48,660,056 shares of Bank of America, a reduction of over 7%, while still holding more than 631.5 million shares of Bank of America as of March 31. Berkshire also trimmed its position in Capital One Financial by 300,000 shares, a reduction of approximately 4%.  

Berkshire’s largest purchase in the quarter was beer manufacturer Constellation Brands Inc., acquiring 6,384,676 shares, a 113% increase in holdings, bringing the total number of shares to 12,009,000. Additionally, the company doubled its stake in pool equipment supplier Pool Corp.  

Furthermore, Berkshire liquidated its entire position in Nu Holdings, the operator of Brazilian digital bank Nubank, selling 40 million shares. It also reduced its investment in Liberty Formula One by approximately half, to 3.5 million shares.  

### Apple Remains the Largest Holding  

Apple remains Berkshire’s largest single holding, with 300 million shares, accounting for about 25% of its total stock portfolio. Although Berkshire had previously significantly reduced its Apple holdings, the latest 13F filing shows no further reductions in the first quarter. As of March 31, the market value of Berkshire’s Apple shares was $66.6 billion. At Berkshire’s annual shareholder meeting on May 2, Buffett spoke highly of Apple CEO Tim Cook’s leadership.  

In addition to Apple, Berkshire’s other major holdings include American Express, Coca-Cola, Bank of America, and Chevron.  

Media analysis notes that overall, Buffett and his two investment managers, Todd Combs and Ted Weschler, made relatively few buy-sell transactions during the quarter. Combs and Weschler jointly manage about 10% of Berkshire’s stock portfolio, with the rest overseen by Buffett himself.  

Many of Berkshire’s smaller holdings (with market caps below $2-3 billion) are managed by Combs or Weschler, who typically operate independently of each other and Buffett.  

### Confidential Holdings Exist  

Earlier this month, Buffett shocked shareholders by announcing at Berkshire’s annual meeting that he would step down as CEO at the end of the year, passing the torch to designated successor Greg Abel while continuing as chairman.  

Large U.S. investors are required to file 13F forms with the SEC within 45 days after each quarter ends to disclose their long-term holdings. These filings are closely watched by the market to gain insight into major institutions’ latest moves. However, the information in 13F filings is lagging and may not be complete. Filers are not required to disclose short positions, and the listed holdings may only be part of larger trading activities. Nevertheless, market observers carefully analyze Berkshire’s 13F filings to gain insights into Buffett and his investment deputies’ recent strategies.  

Meanwhile, Berkshire has requested confidentiality from the SEC, seeking to withhold disclosure of one or more stock investments in its 13F reports. Media analysis suggests this is likely at Buffett’s behest, as the steward of Berkshire’s stock portfolio may wish to continue quietly accumulating certain stocks without drawing market attention or inflating prices.  

Previously, Berkshire made a similar confidentiality request while increasing its stake in insurer Chubb, which was eventually disclosed in 2024.  

Based on Berkshire’s first-quarter 10-Q filing released earlier in May, media analysis suggests that if the new confidential holding is a single stock, its size is relatively small, ranging between $1-2 billion. This new investment is likely part of what Berkshire calls its "business and industry" stock portfolio.  

According to Berkshire’s earnings report, the company was a net seller of stocks in the first quarter, with total purchases of $3.2 billion and sales of $4.7 billion. The company’s total cash and U.S. Treasury holdings have risen to a record $333 billion (after deducting payables reserved for purchasing short-term Treasuries). Market observers have been closely monitoring when Buffett will deploy this massive capital into the market.  

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