In the final quarter of 2024, Berkshire Hathaway, the investment powerhouse led by legendary investor Warren Buffett, made notable changes to its portfolio by reducing its stakes in both Bank of America and Capital One. These adjustments were disclosed in Berkshire’s 13F filing with the U.S. Securities and Exchange Commission (SEC), a mandatory report for firms managing assets over $100 million (R1.84 billion).
Warren Buffett’s profound influence on the world of finance is undeniable. Revered for his unmatched investing prowess and down-to-earth nature, Buffett’s impact on the investment community has been lasting and far-reaching. His interest in business and investing began in his hometown of Omaha, Nebraska, where as a young boy, he cultivated a passion for the stock market and poured over investment books.
His commitment to financial markets led him to pursue a Master of Science in Economics at Columbia Business School, laying the groundwork for his remarkable career. In 1956, Buffett took a significant step by founding his investment partnership, which ultimately set the stage for his future successes.
A pivotal moment came in 1965 when Buffett took control of Berkshire Hathaway, a struggling textile manufacturer, and transformed it into one of the most successful investment firms globally. Today, at 93 years old, Buffett remains deeply involved in leading Berkshire Hathaway.
Buffett’s investment philosophy is cantered on value investing—identifying companies with strong fundamentals that are undervalued by the market. This strategy has consistently delivered impressive long-term returns. Despite his incredible wealth, Buffett maintains a humble lifestyle, living in the same house he purchased decades ago and avoiding unnecessary extravagance. His popular shareholder letters and his engaging role at Berkshire Hathaway’s annual meetings have further cemented his status as a beloved figure in the world of investing.
Buffett is also well known for his philanthropic efforts, having pledged to donate the majority of his fortune to charity upon his death. Through initiatives like The Giving Pledge, which he co-founded with Bill and Melinda Gates, Buffett has inspired other billionaires to commit a portion of their wealth to charitable causes.
During the last quarter of 2024, Berkshire Hathaway made several significant changes to its portfolio. The firm added one new stock—Constellation Brands, a major player in the production and marketing of beer, wine, and spirits. Berkshire also increased its holdings in five companies, including the popular fast-food chain Domino’s Pizza, while trimming its positions in three others: SPDR S&P 500 ETF Trust, Vanguard S&P 500 ETF, and Ulta Beauty.
Notably, Berkshire reduced its stake in eight companies, including T-Mobile, Liberty Media Corp Formula One Series C, and Nu Holdings. Among these reductions were significant cuts to two major U.S. financial institutions—Bank of America and Capital One Financial.
Despite the reduction, Bank of America remains one of Berkshire’s largest holdings, trailing only Apple and American Express in terms of stock size within the portfolio. Berkshire also made a noteworthy cut to its stake in Citigroup, reducing it by a striking 73.5%. Citigroup had previously been one of the top 10 stocks in Berkshire’s portfolio.
Main Image: Investopedia
