Berkshire Hathaway Invests Nearly $1 Billion in Constellation Brands

Warren Buffett's firm takes a 3.1% stake in the alcohol producer despite recent stock underperformance and lowered guidance.

Warren Buffett's Berkshire Hathaway disclosed a 5.6 million share stake in Constellation Brands, valued at approximately $956 million, making it the company's fifth-largest shareholder.
Constellation Brands' stock rose over 5% after the announcement, but the shares remain down 23% year-to-date and 37% since late 2024.
The investment reflects Berkshire Hathaway's value-driven strategy, as Constellation's forward P/E ratio is at its lowest in over a decade, signaling potential long-term growth.
Constellation Brands has faced challenges, including missed earnings expectations, declining wine and spirits sales, and reduced fiscal 2025 growth projections.
Despite near-term pressures, analysts note Constellation's strong cash flow, driven by growth in its beer segment, particularly with popular brands like Modelo and Corona.