From Nasdaq: 2025-05-22 06:07:00

Warren Buffett plans to step down as Berkshire Hathaway’s CEO but continues to make big trades for the conglomerate’s $285 billion portfolio. He reduced stakes in top stocks like Apple and Bank of America while accumulating new stocks like Constellation Brands, leaving Coca-Cola untouched, indicating caution in an overheated market.

Buffett made a new investment in Constellation Brands, buying 12 million shares worth $2.3 billion, despite near-term and long-term challenges the company faces. With revenue expected to decline from $10.2 billion to $9.9 billion by fiscal 2028, Constellation needs to address declining wine brands and lower alcohol consumption among younger consumers.

Coca-Cola remains one of Buffett’s top investments, with 400 million shares worth $28.8 billion in Berkshire’s portfolio. The company has diversified its product offerings beyond sugary sodas, reducing exposure to tariffs by selling concentrates and syrups instead of finished products. Analysts expect revenue and EPS growth for Coca-Cola over the next few years.

Despite Constellation’s undervaluation, it faces tougher challenges than Coca-Cola, which has adapted to changing consumer preferences and diversified its product line. Coca-Cola’s more stable business model and growth prospects make it a safer investment choice compared to Constellation’s uncertainties. Consider investing in Coca-Cola for long-term growth potential.



Read more at Nasdaq: Better Buffett Stock: Constellation Brands vs. Coca-Cola