Staff Reporter
One of the most closely watched events each quarter is the release of Berkshire Hathaway’s 13F filing with the Securities and Exchange Commission (SEC).
This document reveals the company’s holdings at the end of each quarter, showcasing the stocks Warren Buffett and his team have bought and sold over the previous three months.
With Buffett set to retire at the end of the year, this window into one of the most legendary investors of our time is about to close.
In the first quarter of 2025, Buffett sold his stakes in two banking stocks, Citigroup (C) and Nu Holdings (NU), and made a significant investment in a stock that has skyrocketed more than 34,770% since its initial public offering (IPO).
Selling Citigroup and Nu Holdings
Buffett and his team have extensive experience in the banking sector, having owned nearly every major U.S. bank at some point in the 21st century. This history makes Buffett’s recent sale of Citigroup particularly notable.
He acquired a stake in Citigroup in 2022, marking his first ownership of the stock since 2001, according to SEC filings. Citigroup has struggled to keep pace with its peers since the Great Recession and trades at a notable discount to its tangible book value, making it an appealing target for Buffett’s value investing strategy.
Berkshire bought the majority of its Citigroup shares in early 2022 at an average price of $53.40. By the fourth quarter of 2024 and into the first quarter of this year, when Berkshire sold nearly all its shares, the average price was around $71.68. However, the exact selling price remains unknown.
Despite Citigroup’s ongoing transformation under CEO Jane Fraser, who took over in 2021, Buffett’s decision to sell raises questions. With large U.S. banks likely to benefit from deregulation, some analysts believe Buffett may have acted too soon. It appears he has grown cautious about the banking sector, reducing his holdings and possibly anticipating an economic downturn that could impact banks more severely.
Berkshire also divested its stake in Brazilian digital bank Nu Holdings, where it had initially invested $500 million during the IPO at a $30 billion valuation. The company later doubled its position before selling off its shares in the fourth quarter of 2024 and the first quarter of 2025, when Nu’s market cap averaged over $60 billion.
Nu has experienced rapid growth in Brazil and Latin America by providing banking products with significantly lower fees compared to traditional banks.
By the end of Q1, it boasted nearly 119 million active monthly customers and served about 60% of Brazil’s adult population. Although trading at less than 18 times forward earnings seems reasonable given its growth, rising nonperforming loans and concerns about Brazil’s economic outlook have emerged.
Betting on Pool Corp.
While Berkshire didn’t initiate any new positions in Q1, it did boost its stake in global swimming pool distributor Pool Corp. (POOL) by 145%. This stock, which has appreciated over 34,770% since its IPO in 1995, remains a minor part of Berkshire’s portfolio, accounting for just 0.2% of total holdings.
Despite Pool’s impressive long-term gains, its recent performance has been less stellar. In Q1, the company reported adjusted earnings and net revenue that fell short of analysts’ expectations, although it did slightly raise its guidance for 2025.
Analysts have since lowered their price targets for Pool, with mixed ratings: three buy, six hold, and one sell. The average price target suggests only modest upside potential.
Trading at nearly 29 times forward earnings, Pool is not the cheapest option, but it does offer a solid trailing 12-month free cash flow yield of about 4%. As the largest wholesale distributor of swimming pool products in North America, Europe, and Australia, it enjoys a competitive edge, and pool maintenance typically remains resilient during economic downturns. Moreover, Pool is a profitable company that has recently increased share repurchases, indicating a positive outlook.
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