Berkshire bites into Domino's Pizza, dips into Pool amid stock retreat (updated)

Pool

14/11/2024 22:37

* 
      Domino, Pool shares rose after Berkshire reveals stakes
    

        * 
      Purchases come as Buffett sells Apple, Bank of America
    

        * 
      Berkshire ended September with $325.2 billion cash
    

  
 (Adds additional portfolio changes, Domino's and Pool
after-hours stock prices, byline)
    By Jonathan Stempel
       Nov 14 (Reuters) - Warren Buffett's Berkshire Hathaway
 BRKa.N  said on Thursday it made new investments in Domino's
Pizza  DPZ.N  and Pool Corp  POOL.O  in the third quarter, even
as it retrenched from stocks such as Apple  AAPL.O  and Bank of
America  BAC.N .
    Berkshire owned 1.28 million Domino's shares worth about
$549 million as of Sept. 30. It also owned 404,000 shares of
Pool, a distributor of swimming pool supplies, worth about $152
million as of that date.
    The investments were disclosed in a U.S. Securities and
Exchange Commission filing detailing Berkshire's U.S.-listed
investments as of Sept. 30.
        Domino's shares rose 6.9% and Pool shares rose 5.7%
after market hours following Berkshire's disclosures.
  
    Shares often rise after Berkshire reveals new investments,
reflecting investors' belief that Buffett may be providing a
seal of approval.
    Thursday's filing does not say whether Buffett or his
portfolio managers Todd Combs and Ted Weschler are responsible
for individual investments.
    Neither Domino's nor Pool immediately responded to requests
for comment.
        Like chains such as McDonald's  MCD.N , Domino's has
been conducting 
    more promotions
     to attract value-oriented diners, including those shunning
higher-priced sit-down chains in favor of upscale fast food or
home delivery.
  
        Pool, meanwhile, last month said 
    demand
     for non-discretionary repair and maintenance services for
existing pools partially offset "soft" demand for new pool
construction.
  
        Berkshire made the investments even as Buffett amasses
cash.
        The Omaha, Nebraska-based conglomerate has in 2024
nearly doubled its 
    stake in cash and equivalents
     to $325.2 billion as of Sept. 30, and even halted
repurchases of its own stock for the first time since 2018.
  
        Berkshire sold $36.1 billion of stocks and bought just
$1.5 billion in the quarter ended Sept. 30. For the year,
Berkshire has sold $133.2 billion of stocks -- primarily Apple,
followed by Bank of America -- and bought just $5.8 billion.
  
        Buffett hasn't said definitively why Berkshire is
cutting back, though 
    taxes
     may be a factor. Investors have said he may believe
valuations have grown too high.
  
        The cash also gives Berkshire, whose market value is
about $1.01 trillion, room to still make a needle-moving
acquisition while Buffett, 94, remains in charge.
  
        During the quarter, Berkshire also added to its holdings
in aircraft parts maker Heico  HEI.N .
  
        It sold its entire stake in flooring retailer Floor &
Decor  FND.N  and some shares of Capital One  COF.N , Charter
Communications  CHTR.O , Brazilian digital bank operator Nu
Holdings  NU.N  and cosmetics chain Ulta Beauty  ULTA.O .
  
        The sale of more than 96% of its Ulta shares marked a
quick turnaround for Berkshire, which first 
    disclosed
     investing in Ulta in August. Ulta shares fell 3.8% after
hours.
  
        Berkshire also owns dozens of companies including Geico
car insurance, the BNSF railroad and a variety of consumer,
energy, industrial and retail businesses.
  

 (Reporting by Jonathan Stempel in New York; editing by Jonathan
Oatis and Cynthia Osterman)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))