Warren Buffett’s Berkshire Hathaway took stakes in Domino’s Pizza and swimming pool supplier Pool Corp.in the Q3 even as it retrenched from stocks such as Apple and Bank of America. Buffett’s Berkshire stock portfolio owns 1.28 million Domino’s shares worth about $549 million as of September 30. It also owned 404,000 shares of Pool, a distributor of swimming pool supplies, worth about $152 million as of that date.
The investments were disclosed in a U.S. Securities and Exchange Commission filing detailing Berkshire Hathaway’s U.S.-listed investments as of September 30. The portfolio changes were part of a series of shareholding adjustments that show Buffett continues to be a net seller of stocks as he builds Berkshire’s already-enormous cash holdings.
Buffett stock portfolio
The conglomerate announced earlier this month that its cash pile ballooned to a record $320.3 billion from $271.5 billion in the second quarter, with the vast majority of the total ($288 billion) invested in short-term Treasury bills.
Domino’s stock rise after Buffett’s investment
Domino’s stock rose 6.9% and Pool shares rose 5.7% after market hours following Berkshire’s disclosures. Shares often rise after Berkshire reveals new investments, reflecting investors’ belief that Buffett may be providing a seal of approval.
Berkshire Hathaway’s filing on Thursday does not say whether Buffett or his portfolio managers Todd Combs and Ted Weschler are responsible for individual investments.
Buffett’s Pool and Domino’s investment
Neither Domino’s nor Pool immediately responded to requests for comment on the investment by Buffet.
Domino’s has been conducting more promotions to attract value-oriented diners, including those shunning higher-priced sit-down chains in favor of upscale fast food or home delivery.
Pool, meanwhile, last month said demand for non-discretionary repair and maintenance services for existing pools partially offset “soft” demand for new pool construction.
Berkshire’s cash stake
Berkshire made the investments even as Buffett amasses cash.
The Omaha, Nebraska-based conglomerate has in 2024 nearly doubled its stake in cash and equivalents to $325.2 billion as of September 30, and even halted repurchases of its own stock for the first time since 2018.
Berkshire sold $36.1 billion of stocks and bought just $1.5 billion in the quarter ended September 30. For the year, Berkshire has sold $133.2 billion of stocks, primarily Apple, followed by Bank of America and bought just $5.8 billion.
Buffett‘s Apple stock sale
The filing on Thursday confirmed that Buffett sold exactly one-quarter of his enormous stake in Apple. The sale was suggested by Berkshire’s Q3 earnings report earlier this month, but had yet to be officially disclosed to the public.
Buffett has not said definitively why Berkshire is cutting back, though taxes may be a factor. Investors have said he may believe valuations have grown too high.
Other stake sold by Berkshire
It sold its entire stake in flooring retailer Floor & Decor and some shares of Capital One, Charter Communications, Brazilian digital bank operator Nu Holdings and cosmetics chain Ulta Beauty.
The sale of more than 96% of its Ulta shares marked a quick turnaround for Berkshire, which first disclosed investing in Ulta in August. Ulta shares fell 3.8% after hours.
The cash also gives Berkshire, whose market value is about $1.01 trillion, room to still make a needle-moving acquisition while Buffett, 94, remains in charge.
Berkshire’s portfolio changes
During the quarter, Berkshire also added to its holdings in aircraft parts maker Heico.
Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad and a variety of consumer, energy, industrial and retail businesses.
