Berkshire Hathaway’s Big Turn Ahead Of Buffett’s Retirement… Buying Consumer Goods Companies Largely
By Benzinga

Warren Buffett and his successor Greg Abel are shifting Berkshire Hathaway’s investment direction to a consumer-focused company in 2025.

Focusing on the resilience that U.S. consumers have shown in the post-pandemic era, they are investing heavily in brands that rely heavily on consumer health and prospects.

Even as Buffett prepares to step down as CEO of Berkshire Hathaway, the company’s investment decision still reflects his economic insight.

Bank of America CEO Brian Moynihan recently pointed out that consumers are continuing to spend despite concerns about cash reserves.

According to Fortune magazine, these observations are in line with Berkshire’s investment strategy, which has eluded Wall Street and Silicon Valley’s AI stock craze.

One of Berkshire’s major investments this year is Lena (NYSE: LEN), one of the largest homebuilders in the United States.

According to Fortune magazine, Lena now owns more than 3% of Berkshire’s portfolio with a stake worth more than $886 million, despite its stock price falling 28% last year.

Berkshire also increased its stake in Chevron (NYSE:CVX) amid stable gasoline prices in the U.S. market.

In addition, it has expanded its investment in beverage maker Constellation Brands (NYSE: STZ), showing its focus on consumer-oriented brands.

Berkshire Hathaway’s shift to consumer-focused investment clearly demonstrates the company’s confidence in the resilience of U.S. consumers.

Despite economic uncertainty, consumer spending continues, leading to the success of consumer-oriented brands.

The trend aligns with Berkshire’s investment strategy of avoiding the AI stock craze and focusing on brands that rely heavily on consumer health and prospects.