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Warren Buffett’s Berkshire Hathaway (BRK.A; BRK.B) took stakes in Domino’s Pizza (DPZ) and swimming pool supplier Pool Corp. in the third quarter. (POOL), while further reducing its stakes in legacy holdings Apple (AAPL) and Bank of Bank. America (BAC).
The moves were part of a series of stock ownership adjustments – disclosed in regulatory documents filed late Thursday – that show Buffett remains a net seller of stocks as he builds up Berkshire’s already massive cash positions. The conglomerate announced earlier this month that its cash stock had risen to a record $320.3 billion, up from $271.5 billion in the second quarter, with the vast majority of the total ($288 billion) invested in short-term government bonds.
Thursday’s filing confirmed that Buffett sold exactly a quarter of his massive stake in Apple. The sale was hinted at earlier this month by Berkshire’s third-quarter earnings report, but had yet to be officially announced to the public. Berkshire has been steadily reducing its stake in the iPhone maker, cutting it from nearly $175 billion at the start of the year to about $70 billion at the end of September. Yet Apple accounts for about a quarter of Berkshire’s $266 billion stock portfolio.
Berkshire sold approximately 235 million shares of Bank of America as expected. Berkshire, as the owner of more than 10% of the lender, was required to report the transfer of BofA shares throughout the quarter.
Two new additions and an exit
Berkshire acquired nearly 1.3 million Domino’s Pizza shares worth nearly $550 million at the end of the quarter. The company also added a stake of 404,000 shares, worth $152 million, in Pool Corp. to his portfolio. Shares of both Domino’s and Pool rose in extended trading on Thursday after the investments were made public.
Buffett sold the remainder of Berkshire’s position in Floor & Decor Holdings (FND) last quarter, after trimming it in the previous quarter.
Berkshire scraps Ulta, adds Heico
Buffett cut his stake in cosmetics chain Ulta Beauty (ULTA), selling more than 95% of his shares after entering the position in the second quarter.
He also trimmed stakes in Capital One Financial (COF), Charter Communications (CHTR) and fintech company Nu Holdings (NU).
Aerospace company Heico Corp. (HEI) was the only existing position that Buffett added to during the quarter, buying 5,445 shares to bring his holdings to about 1.05 million shares worth more than $200 million.
