Warren Buffett Berkshire Hathaway The shares were sold more than it was bought in 2024, so it is likely that some eyebrows are possible when the company revealed its location in Type brands (NYSE: STZ).
However, this investment was probably lost for Berkashire as much as the concerns of customs tariffs and alcohol consumption have been affected by constellation shares. This may mean that Berkshire needs a tendency more In the Pavite strategy, not less. This is the reason.
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On the surface, the constellation of Pavite stock. Pavite loves “forever” with a product that never ends. People have consumed alcohol since the beginning of the time, so the choice of Constellenge will definitely qualify. Constellation also produces beer No. 1 of the United States, Modelo Especial, which means that it has bought a pioneer in the market, and the major investors tend to search.
Moreover, Buffett has always been a valuable investor, and the current status of Constellenge indicates a low rating. In fact, some fees for one time raised P/E to 47. However, the P/E at the front of 15, the arrow appears to be trading with a great discount.
In addition, the ratio of its price to the PIS (P/S) shows from 3.4 that the scale is from its lowest level since the beginning of the epidemic. The P/S ratio decreased from 6 in 2022.
Moreover, Puffett and his team may have seen an opportunity due to the performance of distant stocks. The constellation shares generally tracked S & P 500 Until it stopped in 2023 and decreased recently.
One of the most popular concerns is the introductory fears in which investors have caught, including Pavite himself. Constellation includes many imports including many Mexican beer such as Modelo, Corona and Spirits like Casa Noble Tequila. Since these products will become more expensive, sales are likely to decrease, and Modelo may lose their first position.
However, the situation opens the possibility of a unique investment opportunity: the “Buffett” opportunity.
One way is to buy shares with fewer evaluation. Since Buffett has bought shares in the fourth quarter, they bought P/S between 4 and 4.4. As we mentioned earlier, stocks are available with 3.4 times sales, and since more declines are possible, one may buy shares with a lower evaluation if the sale continues.
Second, new shareholders can earn profit distributions. Currently, payment of its annual payments of $ 4.08 per share is about 2.2 %, which is much more than the profit distribution revenue of approximately 1.5 % than the S&P 500.
In addition, it raised its profits annually since the payments began in April 2015. Although the payment of last year’s payments was 1 %, the profits have often increased by two percentages of two numbers. Also, the Constellation exceeded $ 1.9 billion in free cash flow in the fiscal year 2025 (which ended to February 28) the cost of $ 732 million of profits, which means that it is likely to provide more payment increases.
It is recognized that the purchases of the Berkshire Q1 will not be known until it is up to 13 -f, and it is possible to add the Buffett team in the previous or current quarters. However, if one can perform all purchases at a lower share price, this may be a time when investors can overcome Buffett returns.
Despite Berkshire’s investments, the constellation brands face the uncertainty in the national term amid increasing definitions and falling consumption. Consequently, investors should not assume that the arrow has been bottom or will become a close bottom.
However, the investment team in Berkshire is likely to be an opportunity since the purchase began at a price higher than today. In fact, low evaluation, increased profit returns prospects, and at least the date of the market performance match may provide an opportunity. With a possible chance to earn higher returns than Berkshire, investors have increasing incentives to start adding constellation shares.
Before purchasing stock brands, consider this:
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Will Healy has sites in Berkchire Hathaway. Motley is a lie that has positions in and recommends the Hathaway. Motley recommends a liar for the constellation. Motley Fool has a disclosure policy.
Success with this stock may require investors to overcome Warren Buffett. This is the reason. It was originally published by Motley Fool
