Warren Buffett’s conglomerate, Berkshire Hathaway, has filed its quarterly 13F form with the Securities and Exchange Commission (SEC), revealing the billionaire’s views on the market. The disclosures show that Berkshire exited its stake in two broad market-linked ETFs, including SPY and VOO, indicating a strong belief that the market is overvalued.
This move comes as no surprise to investors who have been following Buffett’s track record of identifying market tops. In 2024, Berkshire stockpiled cash and sold stocks, signaling that Buffett thinks the market has run too far too fast. The sales of the SPY and VOO ETFs further support this view.
Despite the challenges facing the economy, which includes high inflation and a rapidly changing interest rate environment, the S&P 500 has remained strong. However, many investors believe the market is trading at an elevated valuation, particularly in tech and AI stocks.
Buffett’s latest move suggests he sees value in Constellation Brands, the international maker of beer, wine, and spirits. Berkshire added over 5.6 million shares in the fourth quarter, indicating a bullish view on the company’s prospects. While Constellation’s stock has declined recently, Buffett seems to believe it is trading at a low price.
Analysts agree that Constellation has upside potential, with average price targets suggesting nearly 50% growth. Despite some challenges facing the industry, Buffett and Berkshire see an opportunity in a solid company trading at a good price.
Source: https://www.fool.com/investing/2025/02/20/warren-buffett-just-sold-his-only-vanguard-etf-and