Influential investor Warren Buffett has requested “confidential treatment” from the Securities and Exchange Commission for “one or more” stocks that his conglomerate bought in the first quarter.
Berkshire Hathaway Inc. omitted the said holding from its latest 13F filing with the US regulator, and the “Oracle of Omaha” is not expected to reveal its identity for a few months at least.
That said, while it’s difficult to predict the exact stock that Berkshire loaded up on in Q1, it’s possible to guess the sector at least that it belongs to.
What could be Buffett’s new mystery stock?
Berkshire unloaded its entire stake in Citigroup in the first quarter, which comprised more than 14 million shares in total.
Additionally, the conglomerate trimmed its exposure to other financials as well, including the Bank of America. As a result, BRK’s cost basis tied to financials declined significantly in the first quarter.
On the other hand, the legendary investor doubled his exposure to the beer, wine, and spirits firm, Constellation Brands, to more than $2.0 billion in the first three months of 2025.
This purchase led to a meaningful increase in Berkshire’s cost basis in the consumer category.
The only other category in BRK’s portfolio is “commercial, industrial, and other,” – in which the cost basis was up nearly $2.0 billion in the first quarter, indicating that Buffett’s mystery stock is likely from the industrial sector.
Why does Berkshire often request confidential treatment?
Note that Berkshire has a history of requesting such confidential treatment from the SEC.
During the pandemic, the conglomerate holding company concealed its position in Verizon and Chevron, both of which were revealed to the public in early 2021.
Then in the final quarter of 2023, the legendary investor omitted its stake in Chubb from its 13F filing, which was only disclosed months after in May 2024.
Berkshire typically requests such treatment from the US regulator when it plans on growing its stake in a company for months, presumably because making it public can drive interest and make a stock more expensive for it to buy.
Note that BRK is currently the only non-tech company that’s worth more than $1.0 trillion.
Is Berkshire stock worth owning in 2025?
What Buffett is buying each quarter is often of significant interest for investors, as his relentless focus and knack for picking high-quality value stocks have delivered lucrative returns to Berkshire’s investors for years.
For reference, the conglomerate’s stock price has seen a staggering 5,502,284% increase since he took over in 1965. In comparison, the benchmark S&P 500 index has delivered less than 40,000% only.
Even now, Wall Street has a consensus “overweight” rating on BRK.B with price targets going as high as $606, indicating potential upside of 18% from current levels.
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