Berkshire Hathaway's Strategic Shuffle: New Bets, Big Cuts Amid Market Maneuvers

As of last week, Berkshire Hathaway B (BRK.B) saw a 0.94% increase, although there was a decline of 0.14% over the past week. Since the beginning of the year, the stock has risen by 7%, with a current market capitalization of 1,046.308 billion. Recent trading activity showed that on July 3, 2025, the company had a transaction volume of $1.669 billion, ranking 23rd among U.S. stocks for the day. This represented a decrease of 48.29% compared to the previous day, with trading volume amounting to 3.4433 million shares.

On July 3, Berkshire Hathaway B closed at $485, reflecting a 0.94% increase for the day. Despite a minor decline of 0.14% over the past five trading days and a 7.00% uptick year-to-date, the stock has seen a robust 17.96% increase over the last 52 weeks. The company's revenue for the first quarter of the fiscal year 2025, covering January 1 to March 31, stood at $83.29 billion, which was a 9.22% year-over-year decline. Net profit decreased by 63.59% to $4.672 billion during the same period.

In the third quarter filings, Berkshire Hathaway revealed new investments in Domino's Pizza and Pool Corporation. The selection of these two companies highlights a strategic move, as both have lagged behind the broader market this year. Domino's Pizza has been affected by pressure on spending from lower-income consumers, while Pool Corporation's stock struggled due to cautious discretionary spending leading to diminished demand for swimming pools.

Moreover, Berkshire Hathaway significantly reduced its holdings in Apple, with a 25% cut during the third quarter, amounting to a two-thirds reduction for the year. Similar actions were taken with American Bank, reducing its stake by approximately 23%, with shares amounting to 10.4% of the bank's total equity as of the end of the third quarter. Regulatory filings in October indicated further reductions in American Bank, lessening Berkshire's stake below the pivotal 10% threshold.

The company also sold off a large portion of its shares in Ulta Beauty during the third quarter, marking a 96.5% reduction following disappointing second-quarter results from Ulta that missed expectations—the first such instance since May 2020 where per-share earnings did not meet forecasts.

Additionally, Berkshire acquired a stake in Sirius XM in October, purchasing approximately $86.73 million worth of shares and expanding its total holdings to 108.72 million shares. Despite the adjustments, Berkshire's recent earnings report signaled some operational challenges, notably in its insurance sector. The company's cash reserves soared to a record $325.2 billion despite a surprise decline in third-quarter operating profit by 6.2% year-over-year.

While analysts speculate that high valuations and a desire for a diversified portfolio might be driving Berkshire's reduced interest in Apple and American Bank, the addition of two underperforming stocks further suggests Buffett's belief in the overvaluation of current U.S. equity markets. As of Thursday's close, Berkshire's A shares have risen approximately 29% year-to-date.