Warren Buffett’s Berkshire Hathaway buys stake in Domino’s, Pool

On By Littum

Warren Buffett’s Berkshire Hathaway said Thursday it made new investments in Domino’s Pizza and Pool Corp. in the third quarter, even as it retreated from stocks like Apple and Bank of America.

Berkshire owned 1.28 million Domino shares, worth about $549 million per share. 30 September. It also owned 404,000 shares of Pool, a distributor of swimming pool supplies, worth about $152 million a share. date.

Warren Buffett’s Berkshire Hathaway pulled back from stocks like Apple and Bank of America Reuters

The investments were disclosed in a Securities and Exchange Commission filing detailing Berkshire’s US-listed investments as of 30 September.

Domino’s shares rose 6.9% and Pool shares rose 5.7% after market hours following Berkshire’s disclosures.

Shares often rise after Berkshire unveils new investments, reflecting investors’ belief that Buffett may be giving a stamp of approval.

Thursday’s filing does not say whether Buffett or his portfolio managers Todd Combs and Ted Weschler are responsible for individual investments.

Neither Domino’s nor Pool immediately responded to requests for comment.

Like chains like McDonald’s, Domino’s has run several campaigns to attract value-minded diners, including those who forgo sitting down to more expensive chains in favor of upscale fast food or home delivery.

Pool, meanwhile, said last month that demand for non-discretionary repair and maintenance services for existing pools is partially offsetting “soft” demand for new pool construction.

Berkshire owned 1.28 million Domino shares, worth about $549 million per share. 30 September. AP

Berkshire made the investments, although Buffett is raising money.

The Omaha, Neb.-based conglomerate has nearly doubled its stake in cash and cash equivalents to $325.2 billion per share by 2024. September 30, and even stopped the buyback of its own shares for the first time since 2018.

Berkshire sold $36.1 billion in shares and bought just $1.5 billion in the quarter ended Sept. 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 has not said definitively why Berkshire is cutting, though taxes may be a factor. Investors have said he may think valuations have grown too high.

The cash also gives Berkshire, whose market capitalization is about $1.01 trillion, room to still make a needle move while Buffett, 94, remains in charge.

Buffett has not said definitively why Berkshire is cutting back on Apple and Bank of America, although taxes may be a factor. AP

During the quarter, Berkshire also added to its holdings in aircraft parts maker Heico.

It sold its entire stake in flooring retailer Floor & Decor and some shares in Capital One, Charter Communications, Brazilian digital banking operator Nu Holdings and cosmetics chain Ulta Beauty.

The sale of more than 96% of its Ulta shares marked a rapid turnaround for Berkshire, which first disclosed investment in Ulta in August. Ulta stock fell 3.8% after hours.

Berkshire also owns dozens of companies, including Geico auto insurance, the BNSF railroad, and a number of consumer, energy, industrial and retail companies.