Berkshire Bets on Domino's and Pool Corp
Warren Buffett's Berkshire Hathaway has made notable adjustments to its investment portfolio, reflecting strategic shifts in response to current market conditions.
New Investments
- Domino's Pizza: Berkshire acquired approximately 1.28 million shares of Domino's Pizza, valued at $549.3 million as of September 30, 2024. This move indicates confidence in the company's growth prospects within the fast-food industry.
- Pool Corporation: The conglomerate also purchased about 404,000 shares of Pool Corp., worth $152.3 million. Pool Corp. is a leading distributor of swimming pool supplies and related products, suggesting Berkshire's interest in the home improvement and leisure sectors.
Reductions in Holdings
- Apple Inc.: Berkshire reduced its stake in Apple, one of its largest holdings, by nearly 50% in the last quarter. Despite this reduction, Apple remains a significant part of Berkshire's portfolio.
- Bank of America: The firm also decreased its position in Bank of America, its second-largest holding, reflecting a cautious approach toward the financial sector.
Financial Position
These portfolio adjustments have contributed to Berkshire Hathaway's record-high cash reserves, totaling $276.9 billion. This substantial cash position provides the company with flexibility to capitalize on future investment opportunities.
These strategic moves underscore Berkshire Hathaway's adaptive investment approach, balancing new acquisitions with prudent reductions to optimize its portfolio amid evolving market dynamics.
