Warren Buffett Unfazed By Trump's Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer

Core Viewpoint - Warren Buffett has made a new investment in Constellation Brands, a beer and wine company, as revealed in his fourth-quarter 13F filing, indicating a potential undervaluation of the stock [1][2]. Investment Details - Berkshire Hathaway purchased 5,624,324 shares of Constellation Brands, valued at approximately $1.24 billion, which constitutes around 0.5% of its investment portfolio [2]. - Constellation Brands ranks 18th by dollar value among over 30 stocks held by Berkshire Hathaway [2]. Company Overview - Constellation Brands holds the U.S. license for popular beers such as Modelo, Corona, and Pacifico, and wine brands like Robert Mondavi and Kim Crawford [4]. - Modelo has become the number one beer in the United States in 2023, benefiting from strong brand loyalty [5]. Market Context - The stock of Constellation Brands has declined by 28% due to concerns over potential tariffs on Mexican imports, which could impact the company's profitability [5][6]. - The stock is down 23.5% year-to-date in 2025 and down 30.5% over the last year, reflecting market fears [7]. Investment Strategy - Buffett's investment approach may align with his famous quote about being "fearful when others are greedy and greedy when others are fearful," suggesting a contrarian strategy in the face of market pessimism [6][8]. - The investment could be a short-term position or a precursor to a larger stake in the future, depending on market developments [8]. Recent Stock Performance - Following the announcement of Berkshire Hathaway's investment, Constellation Brands stock rose by 4.6% to$ 170.37 [9].