By Jonathan Stempel
(Reuters) -Warren Buffett’s Berkshire Hathaway (NYSE:) said on Thursday it has made new investments in Domino’s Pizza (NYSE:) and Pool Corp (NASDAQ:) in the third quarter, even as it retreated from stocks like Apple (NASDAQ:) and Bank of America.
Berkshire owned 1.28 million Domino’s shares worth about $549 million as of September 30. It also owned 404,000 shares of Pool, a pool supplies distributor, worth about $152 million at that date.
The investments were disclosed in a U.S. Securities and Exchange Commission filing detailing Berkshire’s U.S.-listed investments as of September 30.
Shares of Domino’s rose 6.9% and shares of Pool rose 5.7% after trading hours following Berkshire’s revelations.
Stocks often rise after Berkshire unveils new investments, reflecting investors’ belief that Buffett may be issuing 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 like McDonald’s (NYSE:), Domino’s is increasingly running promotions to attract value-oriented diners, including those who eschew pricier sit-down chains in favor of upscale fast food or home delivery.
Pool said last month that demand for non-discretionary repair and maintenance services for existing pools partially offset “soft” demand for new pool construction.
Berkshire made the investments while Buffett amassed money.
The Omaha, Nebraska-based conglomerate nearly doubled its cash and equivalents holdings by 2024 to $325.2 billion as of September 30, and even halted share buybacks for the first time since 2018.
Berkshire sold $36.1 billion worth of stock and bought just $1.5 billion in the quarter ended September 30. Berkshire has sold $133.2 billion worth of stock this year — mostly Apple, followed by Bank of America — and bought just $5.8 billion.
Buffett hasn’t definitively said why Berkshire is cutting back, though taxes could be a factor. Investors have said he thinks valuations have become too high.
The money also gives Berkshire, whose market value is about $1.01 trillion, room to still make an acquisition while 94-year-old Buffett remains in charge.
During the quarter, Berkshire also expanded its stake in aircraft parts manufacturer Heico.
It sold its entire stake in flooring retailer Floor & Decor and some of its shares Capital One (NYSE:), Charter communications (NASDAQ:), Brazilian digital banking operator Now Holdings (NYSE:) and cosmetics chain Ulta Beauty (NASDAQ:).
The sale of more than 96% of Ulta stock marked a quick turnaround for Berkshire, which first announced its investment in Ulta in August. Ulta shares fell 3.8% after hours.
Berkshire also owns dozens of companies, including Geico auto insurance, the BNSF railroad and a variety of consumer, energy, industrial and retail companies.
