Warren Buffett disclosed new investments by his company, Berkshire Hathaway, in Domino’s Pizza and Pool Corp during the third quarter of 2024 in a filing with the U.S. Securities and Exchange Commission.
As of September 30, Berkshire owned 1.28 million shares of Domino’s Pizza, valued at approximately $549 million, and 404,000 shares of Pool Corp, a distributor of swimming pool supplies, worth around $152 million. Following the disclosure, Domino’s shares rose by 6.9%, and Pool’s shares gained 5.7%.
Such share price increases are common after Berkshire announces new investments, as investors often view Buffett’s involvement as a stamp of approval. However, the filing did not specify whether Buffett or his portfolio managers, Todd Combs and Ted Weschler, were responsible for the investments.
So far in 2024, Berkshire has sold $133.2 billion worth in stocks, primarily Apple and Bank of America, while only purchasing just $5.8 billion in new investments. For the third quarter, the company sold $36.1 billion worth of stocks and bought only $1.5 billion.
Buffet does not give any comment regarding the sales of Apple and Bank of America. Some investors speculate that the reduced activity may be related to high stock valuations or tax concerns.
In addition to its new investments, Berkshire also increased its stake in aircraft parts maker Heico, sold its entire stake in flooring retailer Floor & Decor, and reduced holdings in several other companies, including Capital One, Charter Communications, Nu Holdings (a Brazilian digital bank), and Ulta Beauty (a cosmetics chain).
As of September 30, Berkshire nearly doubled its cash holdings to $325.2 billion and paused stock buybacks for the first time since 2018.
