It was recently disclosed that Warren Buffett’s Berkshire Hathaway has increased its stake in Constellation Brands, Inc. (NYSE:STZ). Let us shed some light on this development.
Constellation Brands, Inc. (NYSE:STZ) is a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. The company has gained the spotlight over the last few years for the skyrocketing popularity of its Mexican beer brands, particularly Corona and Modelo. In fact, after the controversy surrounding Bud Light, Modelo Especial is now the most popular beer brand in America.
So it comes as no surprise that a seasoned investor like Warren Buffett saw the potential in Constellation Brands, Inc. (NYSE:STZ) and decided to invest a portion of his enormous pile of cash into it. The Oracle of Omaha’s confidence in the alcohol company has now been bolstered even further, with the recent revelation that Berkshire Hathaway grew its stake in STZ to about 12 million shares worth $2.2 billion from the initial 5.6 million shares at the year end of 2024. This has raised Berkshire’s total stake in the maker of Corona and Modelo to 6.6%.
As a result of Buffett’s confidence in the company, the share price of Constellation Brands, Inc. (NYSE:STZ) has surged by more than 4.5% over the last two days.
While we acknowledge the potential of STZ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than STZ and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
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