Editor's Note: This analysis was originally published as a stock note by Morningstar Equity Research.
This analysis was originally published as a stock note by Morningstar Equity Research.
Key Morningstar Metrics for Berkshire Hathaway
- Fair Value Estimate: $487
- Morningstar Rating: ★★
- Morningstar Economic Moat Rating: Narrow
- Morningstar Uncertainty Rating: Low
Berkshire 13F Update
Narrow-moat-rated Berkshire Hathaway BRK.A/BRK.B reported a few changes in its 13F equity investment portfolio during the first quarter, with net sales coming in at $2.4 billion (composed of $4.2 billion of estimated sales and $1.8 billion of estimated purchases). While this varied from the insurer’s reported net sales of $1.5 billion (composed of $4.7 billion of reported sales and $3.2 billion of reported purchases) in its recent 10-Q, the 13F only includes US reportable securities.
The biggest change in the March quarter was the sale of an additional 48.7 million shares of Bank of America BAC for an estimated $2.1 billion. Berkshire has been selling shares of Bank of America since the start of July 2024, offloading 34% of its stake in the back half of the year and raising close to $15 billion, while also locking up a $9.7 billion gain, in the process.
We don’t believe that Berkshire was quite as successful with Citigroup C, but it does look like the firm booked a $540 million gain on its holdings, reflective of a 16% realized gain. Based on our estimates, the company paid $3.3 billion for 55.2 million shares in the first quarter of 2022, or roughly $60 per share. Berkshire then sold 40.6 million shares for an estimated $2.7 billion, or $67 per share, during the fourth quarter of 2024. It finally eliminated Citigroup as a holding in the first quarter of 2025, selling 14.6 million shares for an estimated $1.1 billion.
Berkshire likely used these proceeds to lift its stake in Constellation Brands to 6.6% of that company’s outstanding shares at the end of the March quarter. The insurer picked up 5.6 million shares of Constellation Brands STZ in a new-money purchase estimated to cost $1.4 billion, or $238 per share, during the fourth quarter of 2024. This was equal to a 3.1% stake in the alcoholic beverage firm. Berkshire followed this up with a purchase of 6.4 million shares for an estimated $1.2 billion, or $190 per share, during the March quarter.