Investors always pay close attention to the shares Warren Buffett Berkshire Hathaway He buys – whether the CEO himself is making decisions or not. And one emerges for me.

Type brands (NYSE: STZ) looks like a classic example of greed when others are afraid. But despite the 31 % decrease in the past year, I stay away from this stock.

Type brands

It is one of the largest alcohol producers and marketers in the United States. The industry appears as a whole as if it was in a transitional stage at the present time.

One of the biggest developments is a well -documented shift towards more distinct products. This happened through beer, wine and spiritual drinks.

Constellenge brands are not unaware of continuous changes. The company is looking to put its portfolio to match this trend by stripping some of its low -price lines.

This looks like a good strategy for me. But there is another continuous trend that appears more problematic, which includes its share in the losing market for beer and wine on spiritual drinks.

This is a problem for the company where the beer represents 85 % of the total revenue. Despite growth in some of its distinct sections, the category as a whole is a decrease in the formation of a major concern.

Berkshire Hathaway’s investment managers may see anything, but I don’t know what it is.

Diago

In the United Kingdom, Diago (LSE: DGE) will also be treated with the challenges facing the alcohol industry in general. These include the rise of the GLP-1, which can generally weigh on total demand.

I think, however, FTSE 100 FIRM has a more attractive wallet to deal with these risks. Its sales often come from lives, with smaller contributions from beer and wine.

Diaageo’s Spirits is well documented. But even in the relatively simple wine section, the company is in a firm position towards the luxurious side of the market.

Through a joint project with Mot Hennessy Luis VuittonDiago has access to some of the best champagne names. These include Dom Perenjunand Death and ShandonAnd Veuve clicquot.

Its beer section consists primarily from GuinnessAnd that some analysts speculated that the company may look forward to selling. But I do not think this will be a particularly welcome development.

Guinness The sales were recently strong, confirming the shift towards the distinctive lines across the categories. So I see that the department is another reason for optimism about the Diago wallet.

UK discount?

Many recent attention focused on trading UK shares with less complications than their counterparts in the United States. But this is not clear that it is the case with Constellenge and Diaageo brands.

Although the return on profits and the percentage of price to the profits (P/E) is traded, Constellenge is trading with a free cash flow less than its FTSE 100 counterpart. This means that – on an important way – the arrow is cheaper.

However, I think Diaageo is in a stronger position to deal with the challenges facing the alcohol industry. For this reason is the arrow that I was buying for my wallet.