Buffett makes surprising portfolio changes ahead of retirement

Warren Buffett’s decades-long reign as the country’s premier investing guru is winding down. Berkshire Hathaway’s recent filings indicate that the Oracle of Omaha has made some surprising portfolio adjustments as his impending 2025 retirement approaches. Berkshire Hathaway’s most recent 13F filing revealed that Buffett completely exited his position in two stocks and reduced his stake in another by nearly half. He dumped Formula One (FWONK), Citigroup (C), and halved his stake in Nu Holdings (NU). The halving of the Formula One position didn’t make as many waves as Buffett’s complete offloading of Citigroup and Nu. His decision to abandon Citigroup altogether is interesting because, despite being a long-term, buy-and-hold advocate, he first purchased the stock only in 2022. However, his relatively short time in the position paid off handsomely — Citigroup gained about 41% during its brief stint in the Berkshire portfolio. His dumping of Nu Holdings is noteworthy because it exposed Buffett to the volatile world of cryptocurrency, which he once derided as “rat poison.” Buffett didn’t add any new holdings to Berkshire’s portfolio but did grow several existing positions.

Buffett’s surprising stock shifts revealed

Most notably, he more than doubled his investments in Constellation Brands (STZ) and Pool Corporation (POOL). According to reports, Buffett’s affection for Constellation Brands is consistent with his long-standing investment principles, which include a focus on long-term growth potential, strong fundamentals, and a reliable customer base. However, Buffett decided to increase his POOL holdings by nearly one and a half times, which grabbed the most headlines. Pool Corp. is the world’s largest wholesaler of swimming pool products. Buffett is, as always, looking forward to its future potential rather than past performance. The company aligns well with Buffett’s investment philosophy because it is an industry leader with a dominant market position, has consistently strong cash flow, regularly reports high revenue and solid margins, and has a resilient business model. While Warren Buffett’s active investing days may be coming to a close, his recent moves offer insightful guidance for those seeking to align their strategies with his. As always, individual due diligence and consultation with an investment advisor are paramount before making any significant investment decisions.