Warren Buffett ditches crypto-friendly Nubank stock, profits $250 million

Warren Buffett has exited crypto-friendly Nubank holdings, netting $250 million in profit. The conglomerate also exited Citigroup and cut its Bank of America holdings, offloading more than $2.1 billion in financial stock. Despite the selling, Buffett purchased Constellation Brands in Q1 2025, increasing Berkshire’s holdings by more than 113% to over 12 million shares. The firm’s stake in Constellation Brands now represents 6.6% ownership. The alcoholic beverages producer’s shares inched up 2.7% after the market closed. Warren Buffett dumps Nubank stake Berkshire Hathaway in Q1 2025 (13F) sold its remaining stakes in Citigroup and Nu Holdings, reduced its stake in Bank of America by 7% (about $2 billion), and increased its stakes in Constellation Brands by 113% (about $1 billion) and Pool Corp by 145% (about $250 million).… — David Kass (@DrDavidKass) May 15, 2025 The Securities and Exchange Commission (SEC) filed on May 15 that confirmed Berkshire had liquidated its positions in Nubank’s parent firm, Nu Holdings, ending its stake in the digital bank. Data from Stock Circle indicated that Berkshire Hathaway began offloading its 40.2 million stake in Nubank in 2024, selling roughly 20.7 million in the third quarter at an average price of $13.46 a share. The firm also sold an additional 46.3 million shares in the fourth quarter at an average price of $13.22. In the first quarter of 2025, Berkshire completed its final tranche of 40.2 million shares, selling at an average price of $11.83. The company’s entire transaction was rounded up to a total gain of approximately $250 million from the initial investment. Warren’s exit from Nu Holdings follows the company’s impressive earnings in recent quarters. The firm reported a net income of $557 2 million in Q1 2025, garnering a 47% increase compared to the same quarter in the previous year. The company’s adjusted net income hit $606.5 million, reflecting a 37% year-over-year growth. Last year, Nu Holdings reported an annual net income of $1.97 billion, a 91% increase from 2023. The firm’s previous results indicated that Berkshire’s decision to liquidate NU shares entirely was not about its performance. According to a regulatory filing, Warren Buffett’s Berkshire Hathaway also liquidated its position in Citigroup Bank and trimmed positions in Bank of America and Capital One Financial. The filing with the SEC indicated that the investor offloaded 14.6 million Citigroup C shares. It also noted that Berkshire sold 48.7 million Bank of America BAC shares, cutting its stake by over 7%. The firm also cut its position in Capital One by 300,000 shares, approximately 4%. The American investor has added roughly 240,000 shares of Domino’s Pizza and over 112,000 shares of electronics firm Heico. The conglomerate expanded its Verisign, Sirius, Pool (POOL), and Occidental Petroleum holdings. The company also remains Apple’s largest holding at 300 million shares, making up around 25% of the company’s total equity portfolio. The filing showed that the Nebraska-based firm had previously significantly offloaded its Apple stake but made no moves in the first quarter. Buffett announces his departure from Berkshire Hathaway WARREN BUFFETT TO STEP DOWN FROM BERKSHIRE HATHAWAY AFTER 60 YEARS AT THE HELM 👀 pic.twitter.com/QWjdEPAzcC — Shay Boloor (@StockSavvyShay) May 3, 2025 Buffett announced earlier this month that he would step down as chief executive at the end of the year to hand the position to his designated successor, Greg Abel. The 94-year-old billionaire said he was stepping down simply because he couldn’t keep pace with the demands of the race anymore, especially compared to his successor, Abel. “But when you start getting old … it’s irreversible. The difference in energy level and just how much [Abel] could accomplish in a 10-hour day compared to what I could accomplish in a 10-hour day the difference became more and more dramatic. It was unfair, really, not to put Greg in the job.” -Warren Buffett, CEO of Berkshire Hathaway. The investor also acknowledged that he would remain chairman of the conglomerate, retaining his significant 14% stake, currently worth around $164 billion. Buffett’s son, Howard Buffett, is expected to take over the chairman role after his death. Shares of the conglomerate dipped in the wake of his announcement earlier this month to step down, but the shares still managed to outperform the broader market, up about 12% since the start of the year. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now

Source: Cryptopolitan