Berkshire Hathaway, led by Warren Buffett, established a new investment in Domino’s Pizza in the previous quarter. The conglomerate, headquartered in Omaha, acquired over 1.2 million shares of the pizza giant. At the end of September, this investment was valued at approximately $550 million.
Considering the relatively minor scale of this stake in Berkshire’s vast investment portfolio, it’s plausible that Buffett’s investing partners, Ted Weschler and Todd Combs, were the ones behind this decision. Following the announcement, Domino’s stock climbed more than 8% during after-hours trading. The leading pizza chain recently fell short of Wall Street’s predictions for third-quarter comparable sales growth in the United States, largely due to intensifying competition for budget-conscious consumers.
This year, Domino’s shares have lagged behind the overall market performance. They have only increased by 6%, in contrast to the nearly 25% rise of the S&P 500 during 2024.
Buffett’s Latest Investment in Domino’s
In the last quarter, Berkshire Hathaway also acquired a minor share in Pool Corp, a supplier of swimming pools. This investment was valued at around $152 million by the conclusion of the third quarter.
This stake may represent another value investment, especially since Pool’s stock has declined by 10% this year. During the third quarter, Buffett’s firm almost completely liquidated its recent Ulta position, offloading around 97% of the shares acquired in the previous quarter.
Ulta’s stock saw a modest increase of only 0.8% in the third quarter after a significant drop of 26% in the preceding quarter. Sales of major holdings by Berkshire, including Apple and Bank of America, had been disclosed earlier, with most of their substantial investments remaining intact last quarter.
