Known for his long-term investing philosophy, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) fully exited three key positions in Q4 2024, covering both stocks and exchange-traded funds (ETFs).
Specifically, Buffett sold his stake in Ulta Beauty (NASDAQ: ULTA), SPDR S&P 500 ETF Trust (SPY), and Vanguard S&P 500 ETF (VOO). Since the exit, the assets have recorded a consistent performance trend in the first quarter 2025.
Now, with the first three months of 2025 behind us, here’s how these assets have fared since the Oracle of Omaha exited his positions.
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Ulta Beauty (NASDAQ: ULTA)
Berkshire Hathaway invested $266 million in Ulta Beauty during Q2 2024, only to sell most of that stake in Q4, going against the long-term holding attribute. The decision appears reasonable, as Ulta Beauty’s stock dropped 14.59% in Q1 2025, trading at $366.54 as of the last market update.
Although no reason for the sale was shared, the decline suggests Buffett may have anticipated challenges for the cosmetics retailer, which has also been caught up in broader market losses.
SPDR S&P 500 ETF (SPY)
Buffett also resigned from the SPDR S&P 500 ETF Trust, a low-cost index fund that tracks the S&P 500. The investor first acquired 39,400 SPY shares in Q4 2019 and held them until unloading them in December 2024.
In Q1 2025, the SPDR S&P 500 ETF Trust fell 4.32%, trading at $559.39. The decline aligned with the benchmark index’s shaky start, mainly weighed down by technology stocks.
Vanguard S&P 500 ETF (VOO)
Similarly, Berkshire Hathaway sold its entire position in the Vanguard S&P 500 ETF, the world’s largest ETF.
The firm picked up 43,000 shares in Q4 2019 and held them until exiting in December 2024. In Q1 2025, VOO dropped 4.38%, trading at $513.91 as of press time.
Although Buffett has not explained why he ditched these holdings, market observers point to growing concerns about the S&P 500’s concentration risk.
With just eight stocks, primarily in the tech sector, accounting for a third of the index’s value, a stumble by any of them could drag the market down.
Shocking ETF exit
It’s worth noting that the exit from the ETFs was a shocking decision, considering Buffett has long advocated for the average investor to evaluate such products due to their low costs, especially those tracking broad market indices like the S&P 500.
Looking back, this exit seems to have been a strategic move, with Buffett’s investment conglomerate continuing to outperform the stock market, rising almost 20% in Q1, trading at $532.58 at press time.
Nevertheless, Buffett’s stock sales have contributed to his company’s growing cash pile, which has hit a record high of $334 billion.
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