Warren Buffett's Berkshire Hathaway acquired stakes in Domino's Pizza and Pool Corp during the third quarter of 2024

In the third quarter of 2024, Warren Buffett's Berkshire Hathaway made notable adjustments to its investment portfolio, including new acquisitions and reductions in existing holdings.

Berkshire bought about 1.3 million shares of Domino's Pizza, giving it a 3.6% stake valued at approximately $550 million. Additionally, Berkshire acquired a 1% stake in Pool Corp., worth around $152 million.

Interestingly, Berkshire also sold off a significant portion of its shares in Apple and Bank of America, reducing its holdings in these companies. This move has increased Berkshire's cash reserves to a record $325.2 billion.

New Acquisitions:

Domino's Pizza: Berkshire Hathaway acquired approximately 1.28 million shares of Domino's Pizza, valued at $549.3 million as of September 30, 2024. Domino's Pizza currently has a market cap of $14.86 billion and a PE ratio of 26.36.

Pool Corp.: The conglomerate also purchased about 404,000 shares of Pool Corp., a leading distributor of swimming pool supplies, worth approximately $152.3 million at the end of the quarter. 

Pool Corporation is the world's largest wholesale distributor of swimming pool supplies, parts and outdoor living products. Pool Corp. currently has a market cap of $13.68 billion and a PE ratio of 30.88.  

Reductions in Existing Holdings:

Apple Inc.: Berkshire sold a substantial portion of its Apple holdings, reducing its stake by 25% during the quarter. Despite this reduction, Apple remains one of Berkshire's largest investments, with the company still holding 300 million shares.

Bank of America: The firm also decreased its position in Bank of America by selling approximately 235 million shares.

Other Portfolio Adjustments:

Ulta Beauty: Berkshire significantly reduced its stake in Ulta Beauty by 96.5%, nearly exiting the position entirely.

Floor & Decor: The company fully divested its holdings in Floor & Decor during the quarter.

Heico Corp.: Conversely, Berkshire increased its investment in Heico Corp., a jet engine supplier, adding to the position it initiated in the second quarter.

Overall, Berkshire Hathaway was a net seller in the third quarter, selling approximately $36.1 billion worth of stocks while purchasing about $1.5 billion.

This activity aligns with the company's strategy of maintaining substantial cash reserves, which reached a record $325 billion, primarily held in short-term Treasury bills.