Warren Buffett's Strategic Shift Boosts Domino’s and Pool Corp Amidst Berkshire's Record Cash Reserves
1min read Warren Buffett's Berkshire Hathaway has unveiled its latest holdings for the third quarter, drawing significant attention from global investors. As of September 30, Berkshire had established new positions in Domino's Pizza and Pool Corp, reflecting its strategic pivot towards consumer-focused companies. The firm acquired 1.28 million shares of Domino's Pizza, valued at approximately $549 million, alongside 404,000 shares of Pool Corp, worth about $152 million.
This move comes amid a broader shift, with Berkshire notably selling off substantial portions of its portfolio this year. Over the first nine months of the year, Buffett's firm has net-sold $127 billion in stocks. Specifically, during the third quarter, the company sold $36 billion worth of holdings while acquiring stocks valued at $1.5 billion.
Following the disclosure of these new holdings, shares of Domino's Pizza and Pool Corp saw significant increases in aftermarket trading, with the former rising 7.63% and the latter 5.51%. This market reaction underscores the influence of Buffett's decisions on stock performance and investor sentiment.
In contrast to these new investments, Berkshire continued to reduce its stakes in several major holdings. Notably, the firm cut its Apple holdings by 100 million shares, although Apple remains its biggest investment, with the share count dropping from 905 million at the start of the year to 300 million. Similarly, Berkshire downsized its position in Bank of America, selling 235 million shares, bringing its current holding to approximately 766 million shares.
Buffett's strategy appears rooted in caution, reflecting his famous adage of being "fearful when others are greedy." This conservative approach is exemplified by Berkshire's swelling cash reserves, which soared to $325.2 billion by the end of the third quarter, setting a historic record, a significant increase from $168 billion earlier in the year.
The conglomerate's stock performance this year has been robust, with shares reaching a historic high in September and its market capitalization surpassing $1 trillion for the first time. Berkshire Hathaway's year-to-date increase of 29% has outpaced the 24% rise of the S&P 500 Index.