Warren Buffett’s Berkshire Hathaway has made significant moves in its portfolio recently, shifting its focus towards energy, growth, and resilient industries. In the latest transactions, Berkshire increased its stake in Occidental Petroleum (OXY) to over 28% by purchasing an additional 763,000 shares on February 7, 2025, bringing its total investment to $12.9 billion.
The conglomerate also bolstered its holdings in Constellation Brands (STZ), Domino’s Pizza (DPZ), and Pool Corporation (POOL). Its stake in Heico Corporation (HEI) saw a 51% rise in stock value in 2024. On the other hand, Berkshire reduced its positions in Bank of America (BAC), Citigroup (C), Apple (AAPL), and Ulta Beauty (ULTA).
Berkshire’s moves suggest it’s betting on industries with strong demand and solid business models. Investing in companies like Occidental Petroleum and Constellation Brands indicates confidence in the energy and food sectors, while its holdings in Domino’s Pizza show faith in the growing fast-food sector.
The hedge fund is being cautious about the banking sector, possibly due to regulatory issues and market ups and downs. However, this doesn’t necessarily mean Berkshire is changing its strategy, but rather rearranging its portfolio to balance risk and reward.
Investors are watching closely as Berkshire continues to shape its portfolio for future growth. While some may question a shift towards energy and industrial sectors, it’s essential to consider the companies’ strong demand and resilient business models.
Source: https://www.tipranks.com/news/berkshire-hathaway-shakes-up-portfolio-whats-behind-buffetts-surprising-moves