Warren Buffett’s Berkshire Hathaway has taken a new position in Domino’s Pizza Inc. while continuing to pare back its investment in Apple Inc.
This was disclosed in a regulatory filing late Thursday.
Berkshire reported ownership of approximately 1.28 million shares in Domino’s as of the end of the third quarter, prompting a swift 7% increase in the pizza chain’s stock during after-hours trading.
This acquisition of Domino’s shares marks a notable addition to Berkshire Hathaway’s diverse portfolio, which spans sectors from technology to consumer goods. The filing also revealed a new holding in Pool Corporation with a stake of 404,000 shares, adding further variety to the conglomerate’s investment strategy.
While Berkshire has diversified with new holdings, it also made modest increases to its existing position in Heico Corporation, a leading provider of aircraft parts and jet engine components.
Heico’s focus on aerospace, an area in which Berkshire has demonstrated strategic interest over the years, complements Berkshire’s commitment to holding companies with defensible market positions in essential industries.
Meanwhile, Berkshire’s decision to trim its Apple stake—though the investment firm still holds around 300,000 shares of the tech giant—signals a recalibration within its largest and most profitable equity holding.
This reduction in Apple shares continues a gradual sell-off over recent quarters, even as the iPhone maker remains a significant pillar of Berkshire’s portfolio, both for its consistent returns and strong cash flow.
Beyond Apple, Berkshire Hathaway pared down its positions across a range of other firms, including Capital One Financial Corporation, Nu Holdings Ltd., Sirius XM Holdings Inc., Bank of America Corp., Charter Communications Inc., and Ulta Beauty Inc.
These moves reflect Berkshire’s strategic reallocation towards sectors and firms with potentially higher growth or stability in today’s volatile market environment.
What to know
The adjustments align with Berkshire Hathaway’s historically patient, long-term approach to investing, as the firm seeks to balance its portfolio amid shifting economic conditions.
- The acquisition of consumer-focused brands such as Domino’s and Pool Corp shows Berkshire’s appetite for businesses with strong, steady revenue models and brand recognition, especially amid economic fluctuations.
- The portfolio adjustments come as Berkshire Hathaway amasses unprecedented levels of cash. By the end of the third quarter, Berkshire had nearly doubled its cash and equivalents to $325.2 billion, marking a halt in its own stock repurchases, which had been a consistent practice since 2018.
- In the third quarter alone, Berkshire sold $36.1 billion in stocks and purchased just $1.5 billion. So far this year, the conglomerate has sold $133.2 billion in shares—primarily from Apple and Bank of America—while acquiring only $5.8 billion in new stocks.
Though Buffett has not detailed his reasons for this marked reduction in stock purchases, analysts suggest he may be responding to high asset valuations, with capital gains taxes also potentially influencing the decisions.
