Berkshire Hathaway Inc., owned by Warren Buffett, has recently made new investments in Domino’s Pizza Inc. and Pool Corp, despite selling stocks in Apple and Bank of America. As of September 30, Berkshire held 1.28 million shares of Domino’s Pizza, valued at approximately $549 million, and 404,000 shares of Pool Corp, valued at around $152 million. Pool Corp is a distributor of swimming pool supplies.
The investments were disclosed in a document filed with the Securities and Exchange Commission, detailing Berkshire’s publicly traded investments as of September 30.
After Berkshire disclosed its new investments, Domino’s stock rose by 6.9% and Pool Corp stock increased by 5.7%. Generally, when Berkshire reveals new investments, the stock prices of the related companies tend to rise as investors interpret it as a vote of confidence from Buffett.
Similar to chains like McDonald’s, Domino’s has been engaging in more promotional activities to attract value-conscious customers who prefer upscale fast food or delivery over high-priced sit-down chains.
Meanwhile, Pool Corp stated last month that the demand for existing swimming pool non-discretionary service and maintenance partly offset the “soft” demand for new pool construction.
As of the quarter ending on September 30, Berkshire’s cash and equivalents nearly doubled to $325.2 billion in 2024, marking the company’s first halt in buying back its own stock since 2018.
During the quarter ending on September 30, Berkshire sold $36.1 billion in stocks while only buying $1.5 billion. So far this year, Berkshire has sold $133.2 billion in stocks, primarily in Apple followed by Bank of America, and only acquired $5.8 billion in stocks.
At 94 years old, Buffett remains at the helm, providing Berkshire with ample room for major acquisitions.
In addition to increasing its stake in aerospace parts manufacturer Heico this quarter, Berkshire also sold off most of its holdings in beauty retailer Ulta Beauty. Ulta Beauty’s stock price fell over 4% in after-hours trading.
The sale of Apple stock reduced Berkshire’s exposure to the tech industry by about 3%.
Buffett, in May, addressed shareholders regarding their cash reserves, stating, “We will spend it like there’s no tomorrow. But we will not do it unless we think the risk is low, and we can make a lot of money.”