Berkshire Hathaway has been building up its cash position to its highest-ever levels over the past two years, and that sends some clear messages about what Buffett's thinking about the market. Combined with his net sales of stocks, he seems to think there aren't so many great deals to be had in the market.

Constellation Brands (NYSE: STZ) seems like a classic Warren Buffett buy. It has well-known brands with staying power and solid long-term demand, and the recent panic selling of the stock is a great time for some opportunistic buying.

Constellation Brands experienced a 28% price drop last year due to disappointing performance, reduced outlook, and missed revenue and earnings projections. Learn more on STZ stock here.

Constellation Brands and Diageo are major players, but Warren Buffett chose STZ over DEO. See why STZ stock could be a more attractive investment than DEO stock.

Citi's lead beverages analyst Filippo Falorni views Berkshire Hathaway's investment as "a perfect example of value investing."

Even more impressive, though, is how Wall Street thinks Constellation will perform over the next 12 months. The average price target for the stock is $243.80. This reflects an upside potential of 43%.

Shares of Constellation Brands (STZ) are up 7% on news that legendary investor Warren Buffett has opened a new position in the alcoholic drink

Stocks Analysis by Investing.com (Alessandro Bergonzi) covering: Citigroup Inc, Bank of America Corp, SPDR® S&P 500, Occidental Petroleum Corporation. Read Investing.com (Alessandro Bergonzi)'s latest article on Investing.

Warren Buffett's Berkshire Hathaway entered a new position in beer and spirits-maker Constellation Brands in the fourth quarter of 2024, while trimming several stakes and exiting Ulta Beauty.

Warren Buffett's annual letter to Berkshire Hathaway is widely read by millions for its clues on his stock holdings, sensible sentiment and sage advice.