MW Warren Buffett's new bets on Domino's and Pool Corp. send those stocks climbing
By Emily Bary
Berkshire Hathaway initiated these positions during the third quarter even as it cut back its holdings of big names like Apple and Bank of America
Warren Buffett's Berkshire Hathaway Inc. took out a new position in Domino's Pizza Inc. during the third quarter, while also establishing a stake in Pool Corp.
That sent both stocks higher, with Domino's up 7.5% in Thursday's extended session and Pool Corp.'s up 4.9%.
Berkshire's $(BRK.A)$ $(BRK.B)$ 13-F filing for the third quarter revealed that it opened a position of 1.28 million Domino's shares $(DPZ)$, worth $549 million at the end of the period. Investment outfits have to disclose their holdings 45 days after a quarter's end, giving investors periodic glimpses into their investment strategies, albeit with some delay.
The filing also showed Buffett buying up 404,057 shares of Pool Corp. $(POOL)$, worth $152 million at the quarter's end.
Both stocks have been laggards this year, with Domino's shares up about 6% over the course of 2024 to date and Pool Corp.'s off 8%. The S&P 500 SPX has risen 25%.
Don't miss: Why Warren Buffett's Berkshire likely saw shine in Ulta's beaten-down stock
Domino's stock has been kept in check due to spending pressures among lower-income consumers while Pool Corp.'s has been weighed down by sluggish demand for pools in an environment where people are more cautious on discretionary spending.
Berkshire previously signaled in its earnings report that it further unwound its Apple $(AAPL)$ stake in the third quarter. Buffett's Apple position fell by a quarter in the period, and it's down by two-thirds over the course of this year.
Read: Berkshire's Apple position now down by two thirds in 2024 after latest sales
The moves come as Buffett has been building cash through stock sales generally. Berkshire's cash and equivalents plus short-term U.S. Treasury investments came out to $325.2 billion in the third quarter, relative to $276.9 billion at the end of the second quarter. The strategy has made some bulls nervous, with stocks having hit records in recent days.
See also: Warren Buffett's growing cash hoard makes stock-market bulls nervous. Should it?
While Berkshire has been reducing its stakes in big names like Apple and $Bank of America Corp(BAC-N)$. $(BAC.SI)$, it's also initiated some smaller positions in new names, like the ones revealed in this latest filing, as well as Ulta Beauty Inc. $(ULTA)$, which was a second-quarter pickup.
-Emily Bary
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(END) Dow Jones Newswires
November 14, 2024 16:46 ET (21:46 GMT)
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