Berkshire Hathaway Inc., led by Chairman Warren Buffett, made some significant moves in the third quarter, adding new holdings in Domino’s Pizza Inc. and Pool Corp. The acquisition of about 1.3 million shares in the pizza retailer gave Berkshire a 3.6% stake valued at approximately $550 million. Additionally, Berkshire purchased a 1% stake in pool equipment wholesale distributor Pool Corp., valued at around $152 million. Both new holdings saw an increase in late New York trading, with Domino’s and Pool Corp. shares rising more than 7% after-hours following the filing.
While adding these new positions, Buffett’s firm also made adjustments to its existing portfolio. Most notably, Berkshire sold off a majority of its shares in cosmetics retailer Ulta Beauty, originally acquired in the previous quarter. Ulta Beauty shares fell over 4% in extended trading as a result of the sell-off.
Buffett, known for his strategic investment decisions, has been reducing some of his larger holdings in recent months. This includes trimming Berkshire’s stake in Apple Inc. by about 25% and Bank of America Corp. to below the 10% threshold. The disposals of Apple shares alone reduced Berkshire’s allocation to the technology sector by approximately 3%. Overall, Berkshire reported $34.6 billion in net share sales in the third quarter, pushing its cash position to a record $325.2 billion.
Despite holding a significant amount of cash, Buffett remains cautious about deploying it, stating, “We’d love to spend it, but we won’t spend it unless we think we’re doing something that has very little risk and can make us a lot of money.” This prudent approach underscores Buffett’s long-term investment philosophy and commitment to maximizing shareholder value.
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