Dear Reader,
Tuesday, September 30 could be a BIG day for one small group of stocks.
That's because, on September 30, 2025, at midnight ET... a groundbreaking emergency order goes into effect, issued directly by Trump.
This move is about to reset the U.S. economy in a way we haven't seen in 50 years.
In short, Trump is about to tap into a force worth an estimated $257 trillion.
Starting Tuesday, this force is about to make millions of Americans vastly wealthier and improve the standard of living across our entire nation... just as it's done before - many times - over hundreds of years.
This has nothing to do with tariffs... or interest rates... or anything you're probably hearing about in the news right now.
Most people have no idea this is happening. And even if they do know about it, they don't truly understand it.
But I'll tell you who does know about it:
Billionaires and insiders.
Warren Buffett called this, "The greatest transfer of wealth in history."
And that's why Buffett and billionaires like Elon Musk, Jeff Bezos, and Bill Gates have already started moving billions of dollars into the small group of investments that will benefit from what's about to happen on Tuesday.
If you want to take full advantage of this, you're quickly running out of time.
Again, Trump's new emergency order goes into effect at midnight ET on Tuesday. By the time you see this in the news, it may already be too late.
Regards,
Rob Spivey, CFA
Director of Research, Altimetry
P.S. I'm giving away one of those tickers for free, on camera. It's a stock directly at the heart of this story. Warren Buffett has been buying millions of shares recently, even while selling big tech stocks like Apple. Click here to see Warren Buffett's #1 stock for what's coming on Tuesday - for free.
Constellation Lowers Outlook: Time to Panic on Buffett's Big Bet?
Written by Leo Miller. Published 9/12/2025.
Key Points
- Constellation Brands significantly lowered its fiscal 2026 outlook, causing shares to tank so far in September.
- Shares now trade at a paltry forward price-to-earnings (P/E) ratio compared to Constellation's history, with a key long-term tailwind intact.
- Is it time for investors to cut and run, or stay the course?
Constellation Brands (NYSE: STZ), one of Warren Buffett's largest bets at Berkshire Hathaway (NYSE: BRK.B), is under pressure in September. On Sept. 2, the company cut its full-year guidance, sending shares down nearly 10% this month and clouding Berkshire's $2.2 billion stake.
With the firm's near-term outlook reduced, should investors panic over this consumer staples stock? We'll dive into the details and explain why, for those focused on the long haul, there's no need to hit the panic button. All data on Berkshire's portfolio is as of June 30, 2025, unless noted. Constellation's guidance figures use midpoint estimates.
Constellation Lowers Optimistic Outlook to Industry Norms
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Constellation owns some of the world's most popular Mexican beer brands, including Corona, Modelo, and Pacifico. In a press release, the company announced several downgrades to its fiscal 2026 guidance, which runs through February 2026. Its comparable earnings per share (EPS) guidance now stands at $11.45, about a 10.2% cut from the prior midpoint.
Additionally, Constellation now expects net beer sales to decline by 3%, versus its previous forecast of 1.5% growth. Beer operating income is projected to fall 8%, compared to an earlier estimate of 1% growth. Free cash flow guidance has been lowered to $1.35 billion, nearly 13% below earlier projections.
Constellation cited "a challenging macroeconomic environment" for the downgrade, noting a steady drop in high-end beer sales in recent months. The slowdown has been especially pronounced among Hispanic consumers, who represent roughly 50% of its U.S. volume.
While these revisions are painful, they also align Constellation's outlook more closely with the broader beer industry, rather than the outsized growth it had previously projected—offering a bit of comfort amid the cut.
The company also highlights areas of strength: from March to mid-August, Constellation gained more retail market share than any other U.S. brewer, suggesting it's winning over non-Hispanic drinkers even as challenges persist.
Buffett Buys Constellation's Q2 Dip With Long-Term View
Buffett and Berkshire's specific thesis on Constellation isn't public, but their overarching strategy is clear: make long-term bets, and ignore short-term volatility to compound gains. About $204 billion, or 79%, of Berkshire's $257 billion portfolio is invested in stocks held for at least five years.
In Q2, Constellation shares fell about 11%. Rather than trim its position, Berkshire added roughly 1.4 million shares, raising its stake to 13.4 million shares in total. That move underscores Berkshire's willingness to buy the dips.
Demographics also support the long-term case. Hispanic Americans—who drive most U.S. population growth—grew by 1.8% from 2022 to 2023, according to the U.S. Census Bureau, far outpacing the 0.2% growth of the non-Hispanic population.
Analysts expect this trend to continue for decades, regardless of immigration policy. That demographic tailwind bodes well for a brewer with such a large Hispanic customer base.
However, these shifts unfold over many years, requiring a long-term investment horizon. Near- and mid-term, immigration policy may pose headwinds.
Constellation's Forward P/E Is Near Cycle Lows
At a forward price-to-earnings (P/E) ratio of roughly 12.5x, Constellation appears attractively valued. That's markedly below its five-year average forward P/E of about 19.5x, and only slightly above its cycle low of 11.5x.
Overall, Constellation Brands looks like a compelling long-term value opportunity, not a stock to flee.
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