When Warren Buffett makes a move, Wall Street listens. And in 2025, the Oracle of Omaha—alongside heir apparent Greg Abel—is doubling down on what he knows best: everyday consumer demand. Forget the AI hype machine; Berkshire Hathaway (BRK.A, BRK.B) is putting more than $1 billion into housing, energy, and beverages.
Betting Big on Housing
Berkshire’s latest filings show a 265% increase in its stake in Lennar Homes (LEN), now holding about 7 million shares worth roughly $886 million. That’s a serious bet on the U.S. housing market, which has been battered but not broken.
Lennar’s stock fell 28% last year, but Buffett clearly sees opportunity in the rubble. With the U.S. Chamber of Commerce estimating a housing shortage of 4.7 million units, and the Fed finally easing rates, the setup looks like classic Buffett: buy when others are nervous, hold until the fundamentals catch up.
Chevron: Energy Still Matters
Buffett also boosted Berkshire’s stake in Chevron (CVX), adding 3.45 million shares in Q2. Despite geopolitical turmoil and supply chain headaches, U.S. gasoline and heating oil prices have stayed relatively stable over the past year. That stability has quietly supported consumer spending—Bank of America even noted that gas spending accounted for a third of last month’s consumption growth.
Buffett’s move signals confidence that energy demand isn’t going anywhere, no matter how loud the green transition narrative gets.
Constellation Brands: Betting on Beverages
And then there’s Constellation Brands (STZ)—the company behind Corona, Modelo, and a growing lineup of low- and no-alcohol drinks. Berkshire nearly doubled its stake to 12 million shares, worth about $2.2 billion.
Sure, the alcohol market has its ups and downs, but Buffett’s play here is simple: people drink in good times and bad. And with Constellation expanding into "healthier" beverage options, the company is hedging against shifting consumer tastes.
Pulling Back From Banks
Interestingly, Berkshire trimmed its exposure to financials like Citigroup (C). That’s a notable pivot, given Buffett’s long history with banks. But in a high-rate, high-risk environment, it seems he’d rather park capital in businesses tied directly to consumer demand than in lenders wrestling with credit quality.
The Big Picture
Buffett’s 2025 strategy is a reminder that while Wall Street and Silicon Valley are obsessed with AI stocks, Berkshire is sticking to its bread and butter: housing, energy, and consumer staples. These aren’t flashy plays, but they’re the kind of long-term bets that have kept Berkshire’s portfolio resilient through decades of market cycles.
As always, Buffett’s message is clear: when in doubt, invest in what people can’t live without—roofs, fuel, and maybe a cold beer at the end of the day.