Berkshire's Q3 Moves: Domino's Pizza, Pool Corp, and Ulta Beauty

Warren Buffett's Berkshire Hathaway has made some notable changes to its portfolio in the third quarter of 2024, establishing new positions in Domino's Pizza and Pool Corp while significantly reducing its stake in Ulta Beauty. These moves reflect Buffett's long-term investment strategy and his willingness to adjust positions based on changing fundamentals.

Domino's Pizza, the world's largest pizza chain by sales and stores, has been added to Berkshire Hathaway's portfolio. With a strong brand recognition and market dominance in the pizza delivery sector, Domino's Pizza aligns well with Buffett's investment strategy. The company's consistent growth, dividend growth, and stable earnings potential make it an attractive investment for Berkshire Hathaway. Domino's Pizza's forward-looking P/E ratio of 24.35 suggests that investors expect continued growth in earnings, while its dividend yield of 1.4% provides a steady income stream.

Pool Corp, a leading distributor of pool supplies, has also been added to Berkshire Hathaway's portfolio. Pool Corp's position as a leading distributor in a stable industry aligns with Buffett's focus on quality and fundamentals. The company's strong financial performance, recurring revenue, and dividend payout make it an attractive investment for Berkshire Hathaway. Pool Corp's forward-looking P/E ratio of 14.57 is lower than that of Domino's Pizza, indicating that investors may have lower expectations for future earnings growth, but its stable industry and recurring revenue stream provide a solid foundation for the company.

Ulta Beauty, a retailer of beauty products, has seen its shares sold by Berkshire Hathaway in the third quarter of 2024. This decision suggests that Buffett no longer sees the company's fundamentals or long-term prospects as attractive enough to maintain his investment. Ulta Beauty's stock price has been volatile in recent years, with a significant drop in 2022 and a subsequent recovery in 2023. Buffett might have reassessed the company's prospects given these market fluctuations and decided to sell his shares.



In conclusion, Berkshire Hathaway's Q3 moves reflect Buffett's long-term investment strategy and his willingness to adjust positions based on changing fundamentals. The addition of Domino's Pizza and Pool Corp to the portfolio demonstrates Buffett's focus on quality and fundamentals, while the sale of Ulta Beauty shares indicates his ability to reassess investments based on market conditions. Investors should continue to monitor Berkshire Hathaway's portfolio and the performance of these companies to gain insights into Buffett's investment strategy and the broader market trends.