From Yahoo Finance: 2025-04-26 18:14:00

Warren Buffett’s Berkshire Hathaway sold more stock than it bought in 2024, including a position in Constellation Brands. The investment has lost value due to tariff fears and falling alcohol consumption. However, Constellation’s low valuation, high dividend yield, and potential for future growth present a unique opportunity for investors.

Constellation Brands, a top beer producer, offers a product with consistent demand that aligns with Buffett’s investment strategy. The company’s low P/E ratio and forward P/E ratio, along with a price-to-sales ratio that has decreased since the pandemic, indicate a potential undervaluation.

Despite recent challenges such as tariff concerns impacting sales, Constellation Brands presents an opportunity for investors to potentially outperform Buffett by investing at a lower valuation and earning a higher dividend yield. As Berkshire Hathaway’s investment team saw potential in the stock, other investors may consider adding Constellation shares to their portfolio.

The Motley Fool Stock Advisor team has identified the 10 best stocks to buy now, with Constellation Brands not included in the list. The team’s track record of selecting high-performing stocks, with returns far exceeding the market average, highlights the potential for significant gains with their recommendations.

Investors looking to potentially outperform Warren Buffett may consider investing in Constellation Brands, given its current low valuation, dividend yield, and historical performance. The opportunity to capitalize on a stock that Berkshire Hathaway has invested in presents a unique chance for investors seeking higher returns.



Read more at Yahoo Finance: Succeeding With This Stock May Require Investors to Out-Buffett Warren Buffett. Here’s Why.