&#34;Oracle of Omaha&#34; Warren Buffett's Berkshire Hathaway announced on Thursday that it made new investments in Domino's Pizza and Pool Corp in the third quarter, despite the company pulling funds from stocks like Apple and Bank of America.
As of September 30, Berkshire held 1.28 million shares of Domino's, valued at approximately $549 million. As of that date, the company also owned 404,000 shares of swimming pool supplies distributor Pool, valued at about $152 million.
These investments were disclosed in a filing with the U.S. Securities and Exchange Commission (SEC), which detailed Berkshire's investments listed in the U.S. as of September 30.
Following Berkshire's disclosure of this information, Domino's stock rose 6.9% in after-hours trading, while Pool's stock increased by 5.7%.
Typically, the stock prices of companies in which Berkshire invests tend to rise after such announcements, reflecting investors' belief that Buffett may be providing a form of endorsement.
The filing on Thursday did not specify whether Buffett or his portfolio managers Todd Combs and Ted Weschler were responsible for these investments. Both Domino's and Pool did not immediately respond to requests for comment.
Notably, Buffett made these investments while accumulating cash.
As of September 30, 2024, the Omaha, Nebraska-based conglomerate's cash and cash equivalents nearly doubled to $325.2 billion, even halting stock buybacks for the first time since 2018.
In the quarter ending September 30, Berkshire sold $36.1 billion in stocks while only buying $1.5 billion. So far this year, Berkshire has sold $133.2 billion in stocks, primarily Apple, followed by Bank of America, whereas Berkshire has only purchased $5.8 billion in stocks this year.
Buffett did not specify why Berkshire is reducing its holdings, but taxes may be a factor. Investors suggest he may believe valuations are too high.
Berkshire's market capitalization is approximately $1.01 trillion, and under the continued leadership of the 94-year-old Buffett, the substantial cash it holds also provides Berkshire with the capacity to pursue a significant acquisition.
Additionally, in the quarter ending September 30, Berkshire increased its stake in aircraft parts manufacturer Heico. The company sold all of its shares in flooring retailer Floor &amp; Decor, as well as partial stakes in Capital One, Charter Communications, Brazilian digital bank operator Nu Holdings, and cosmetics chain Ulta Beauty.
Berkshire Hathaway sold over 96% of its shares in Ulta Beauty, which was first disclosed in August. Ulta Beauty's stock fell 3.8% in after-hours trading
Berkshire Hathaway also owns dozens of companies, including Geico car insurance, BNSF railroad, and various consumer, energy, industrial, and retail businesses

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"Warren Buffett," the "Oracle of Omaha," through Berkshire Hathaway, made new investments in Domino's Pizza and Pool Corp in the third quarter, holding 1.28 million shares and 404,000 shares, valued at approximately $549 million and $152 million, respectively. Following the investments, the stock prices of Domino's and Pool rose by 6.9% and 5.7%, respectively. At the same time, Berkshire's cash and cash equivalents reached $325.2 billion, indicating that it is accumulating cash while making investments

- Berkshire Hathaway, led by Warren Buffett, announced new investments in Domino's Pizza and Pool Corp in its third-quarter report, despite divesting from stocks like Apple and Bank of America.  
- As of September 30, Berkshire held 1.28 million shares of Domino's, valued at approximately $549 million, and 404,000 shares of Pool, worth about $152 million.  
- The company also reported a significant cash increase to $325.2 billion, while selling $133.2 billion in stocks this year, indicating a strategic shift in its investment approach.

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