Berkshire Hathaway reduces exposure to financial firms like Citigroup Inc., focuses more on AI stocks.

From Yahoo Finance: 2025-05-18 15:03:00

Berkshire Hathaway made significant changes to its investment portfolio, doubling its position in Constellation Brands and completely exiting its $1 billion stake in Citigroup Inc. The firm also reduced exposure to other financial firms like Bank of America and Capital One. The overall stock portfolio declined by 3% to $258.7 billion in the quarter ending in March.

The quarterly filing did not specify who was responsible for each stock transaction, whether Warren Buffett, Todd Combs, Ted Weschler, or Greg Abel. Citigroup Inc. was valued by Buffett for its appealing valuation and consistent dividend track record. The stock has a forward P/E ratio of 10.30 and a dividend yield of 2.96%. While the stock has grown nearly 20% in the past year, Berkshire sees more promise in AI stocks for higher returns with limited downside risk.

Berkshire Hathaway’s recent 13-F filing showed a strategic shift in its investment portfolio, with a focus on reducing exposure to financial firms and increasing investments in other sectors. The firm’s decision to exit Citigroup Inc. and double its position in Constellation Brands reflects its evolving investment strategy.

While Citigroup Inc. has shown growth potential, Berkshire Hathaway believes that certain AI stocks offer more promising returns with lower risk. The firm remains focused on identifying opportunities that align with its investment philosophy and long-term goals.

Read more: Berkshire Trims Citigroup Inc. (C) and Other Financial Holdings