Did Warren Buffett Make a Mistake Selling This High-Yield Dividend Stock? Wall Street Thinks So.

Core Viewpoint - Warren Buffett's Berkshire Hathaway has been a net seller of stocks for 10 consecutive quarters, including a complete exit from Citigroup [1][9] Group 1: Investment Actions - In Q1 2025, Berkshire Hathaway reduced its holdings in six stocks and fully exited its position in Citigroup [1][7] - Buffett initially bought approximately 55.2 million shares of Citigroup in Q1 2022, viewing it as a potential turnaround play [4][6] - Despite a decline in Citigroup's shares throughout much of 2022 and 2023, Berkshire continued to invest, purchasing an additional 89,000 shares in Q1 2023 [6][7] Group 2: Market Reaction - Wall Street analysts largely disagree with Buffett's decision to sell Citigroup, with 16 out of 22 analysts rating the stock as a buy or strong buy [9][10] - The consensus 12-month price target for Citigroup suggests an upside potential of nearly 12%, with the most optimistic analyst predicting a 46% increase [10][12] Group 3: Financial Performance - Analysts view Citigroup as a solid financial services company with rising revenue and profits, trading at only 10.3 times forward earnings estimates [12][14] - Citigroup's share price remains over 25% below its book value, and it offers an attractive forward dividend yield of nearly 3% [12][10] Group 4: Diverging Perspectives - Buffett's decision to sell may reflect a broader concern about bank stocks and the impact of tariffs on the U.S. economy, despite having made a profit on the investment [14][15] - The situation illustrates that different investors can have valid reasons for buying or selling the same stock based on their individual circumstances and goals [15]