Warren Buffett Unfazed By Trump's Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer

Investing legend Warren Buffett is known for finding stock undervalued and unloved by Wall Street and he may have done that again with a new investment unveiled in his latest fourth-quarter 13F.

What Happened: Known for decades of strong investment returns that have outperformed the markets, Buffett unveiled a new investment in beer and wine company Constellation Brands STZ.

Berkshire Hathaway Inc BRK BRK unveiled a 5,624,324 share purchase of Constellation Brands stock in the fourth quarter in the latest 13F filing.

The position was recently valued at $1.24 billion, representing around 0.5% of Berkshire Hathaway’s investing portfolio. In the latest filing, Constellation Brands ranks 18th by dollar value out of more than 30 stocks held by Berkshire Hathaway.

It is unknown if Buffett was the one to make the investment or if it was one of his investment managers. Buffett is noted for being a teetotaler, someone who does not drink. Buffett has often said he doesn't drink and never has due to health reasons.

While this doesn't mean that Buffett wouldn't invest in a company that makes money from people drinking beer and wine, it could limit the likelihood that he made the investment himself or without some convincing.

Constellation Brands has the U.S. license for beers like Modelo, Corona, and Pacifico and also has wine brands like Robert Mondavi, Kim Crawford, and Meiomi in its portfolio. Modelo is the number one beer in the United States, and Modelo and Corona rank among the top five imported beers in the United States annually.

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Why It's Important: Buffett is known for investing in value stocks that may be beaten down by Wall Street and in companies that have products loved and consumed by many people.

Modelo became the number one beer in the United States in 2023, and Constellation Brands benefitted from strong brand loyalty from beer drinkers.

Constellation Brands stock has taken a hit in recent months due to fears of President Donald Trump‘s possible tariffs on Mexican imports. The stock is down 28% since Benzinga's November article highlighted it as a potential loser in Trump's tariffs on Mexico.

Constellation imports beers manufactured in Mexico by partner Grupo Modelo, which is owned by Anheuser-Busch InBev BUD. Tariffs could increase the cost of goods for Constellation Brands and force the company to choose between raising consumer rates or taking lower profits.

With the stock down significantly, Buffett could be practicing one of his most famous investing quotes of all time.

"Be fearful when others are greedy and greedy when others are fearful," Buffett once said.

The famous quote was picked as the favorite of Benzinga readers in a previous poll.

With fears of Trump tariffs on Mexican goods, the stock has fallen out of favor. It is down 23.5% year-to-date in 2025 and down 30.5% over the last year. Buffett or his team could have made the purchases for numerous reasons, including a strong brand or the stock falling too far on the fears.

Buffett and his team are likely being "greedy when others are fearful" here, and time will tell if the tariffs on Mexican goods are enacted and end up hurting Constellation Brands.

For Berkshire Hathaway, the investment could be a small one made over the short term or could build a new favorite investment if more shares are added to the position in subsequent quarters.

STZ Price Action: Constellation Brands stock is up 4.6% to $170.37 on Tuesday as investors dissect the Berkshire Hathaway 13F filing from Friday.

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