Following is a comprehensive analysis of Warren Buffett’s Q4 2024 portfolio changes compared to Q3 2024.

Key Observations

• No major changes in top holdings like Apple (AAPL), American Express (AXP), and Coca-Cola (KO), though some valuation shifts.
• Financial sector trims, particularly in Bank of America (BAC) and Citigroup (C).
• New investments and additions in Domino’s Pizza (DPZ), Constellation Brands (STZ), and Pool Corp (POOL).
• Complete exits from certain ETF and consumer discretionary stocks.

Significant Reductions

1. Bank of America (BAC)
   • Sold 117.4 million shares (-15%), reducing total holdings to 680.2 million shares.
   • The market value declined by $1.75 billion (-5%).
   • This suggests a continued pullback from the banking sector, though still maintaining a sizable position.
2. Citigroup (C)
   • Sold 40.6 million shares (-73%), bringing the position down to just 14.6 million shares.
   • The market value decreased by $2.43 billion (-70%).
   • A sharp de-risking move in financial services, following a similar pattern from previous quarters.
3. Coca-Cola (KO)
   • No change in shareholding (400 million shares), but market value dropped by $3.84 billion (-13%).
   • This indicates Buffett is holding despite stock underperformance.
4. Liberty Media Stocks
   • Charter Communications (CHTR): Sold 830,000 shares (-29%), reducing the stake significantly.
   • Liberty Latin America (LILA, LILAK): Value fell -34% and -33%, though share count remained unchanged.
   • Liberty Formula One (FWONK): Reduced stake by 921,000 shares (-12%), though its market value increased 5%.
5. Occidental Petroleum (OXY)
   • Added 8.9 million shares (+4%), yet the total value dropped slightly due to price changes.
6. Nu Holdings (NU)
   • Sold 46.3 million shares (-53%), cutting exposure to Latin American fintech.
   • The market value fell $764 million (-65%), showing a significant decline in confidence.

New Additions & Notable Increases

1. Domino’s Pizza (DPZ)
   • Added 1.1 million shares (+87%), nearly doubling the stake.
   • Market value jumped 82%, showing a strong bullish stance on consumer discretionary.
2. Constellation Brands (STZ)
   • New position with 5.6 million shares valued at $1.24 billion.
   • Investment in the alcohol/beverage industry, similar to Coca-Cola.
3. Pool Corporation (POOL)
   • Increased stake by 48%, now holding 598,689 shares.
   • Market value rose 34%, reflecting confidence in home improvement/leisure markets.
4. Sirius XM Holdings (SIRI)
   • Added 12.3 million shares (+12%), increasing exposure to media/streaming.
   • Market value up 8%, indicating continued belief in its long-term prospects.

Complete Exits

Buffett fully liquidated several positions:

• Vanguard S&P 500 ETF (VOO) & SPDR S&P 500 ETF (SPY)
  • Sold 43,000 and 39,400 shares respectively (-100%).
  • Suggests a move away from passive index funds.
• Ulta Beauty (ULTA)
  • Sold 24,203 shares (-100%), completely exiting the stock.
  • Value loss: $9.4 million.
• Other Smaller Exits
  • NVR Inc. (NVR): No share reduction but value dropped 17%.
  • Lennar Corp (LEN-B): No share reduction but value fell 24%.

Key Takeaways

1. Still Bullish on Apple, American Express, Coca-Cola
   • Buffett held steady on Apple (AAPL) at 300M shares, despite an 8% valuation increase.
   • American Express (AXP) and Visa (V) gained in value, reaffirming his confidence in consumer spending.
2. Biggest Trims: Bank Stocks
   • Major reductions in Bank of America and Citigroup, cutting exposure to traditional finance.
   • Capital One (COF) was trimmed by 18%, suggesting concern over credit markets.
3. New & Increased Positions In Consumer & Media Bets
   • Domino’s, Constellation Brands (new), and Pool Corp, showing confidence in discretionary spending.
   • Increased Sirius XM (SIRI) position, signaling a long-term media bet.
4. Exiting ETFs & Passive Investing
   • Buffett’s exit from ETFs like VOO and SPY suggests a shift back to active stock selection.

Overall Portfolio Strategy

• Trimming financial holdings while increasing exposure to consumer goods and discretionary spending.
• Holding steady on top names (Apple, Coca-Cola, American Express) while adding to media, alcohol, and food services.
• No major energy moves, though Occidental Petroleum saw a small increase.
• Reduction in Latin American fintech (Nu Holdings), indicating concerns over emerging markets.

This rebalancing suggests Buffett is positioning for a more resilient, consumer-driven market in 2025.

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