Modelo maker Constellation rises after Buffett says he has a nearly billion-dollar stake

Constellation Brands, a booze company that sells popular Mexican beer brands in the US, rose on Tuesday morning, the first trading day since Warren Buffett’s Berkshire Hathaway disclosed a 3.1% stake in the company after markets closed on Friday.

In a quarterly filing showing its holdings as of December 31, Berkshire Hathaway disclosed that it had picked up 5,624,324 shares of Constellation Brands, the company that sells Modelo and Corona in the United States. That makes Buffett’s firm the fifth-biggest holder of the stock, according to FactSet. The filing also said Berkshire had sold more Bank of America stock and held its position in Apple after previously selling off shares in the tech giant.

Constellation has fared better than other peers as the industry struggles with changing consumer attitudes toward alcohol consumption. Modelo, which in the past two years has surpassed Bud Light as America’s most popular beer, has been a rare source of growth. The company has faced one recent headwind: the threat of 25% tariffs on its most popular brands, which are imported from Mexico.

Buffett’s bet likely hasn’t been fruitful so far. Constellation stock has fallen by 24% since the start of the year, and the stake is worth about $956 million today, compared to the $1.24 billion of the holding as of the filing date. Of course, that doesn’t mean Buffett’s bailing — he’s the world’s best-known value investor, with a philosophy of buying and holding.