Berkshire Hathaway, under the leadership of Warren Buffett, has amplified its investments in Domino’s Pizza Inc. (NYSE:DPZ), Pool Corporation (NASDAQ:POOL), and Constellation Brands, Inc. (NYSE:STZ).
What Happened: According to the recent 13F filings, Berkshire’s investment in Pool Corp escalated from approximately $152 million to $204 million. Its stake in Domino’s Pizza also witnessed a substantial surge from nearly $549 million to $1 billion. Furthermore, Berkshire initiated a significant stake in Constellation Brands, estimated at around $1.2 billion.
Investment experts speculate that these investment choices were probably made by Todd Combs or Ted Weschler, who manage smaller investment portfolios at Berkshire Hathaway, reports the Fortune. Currently, the company holds a cash reserve valued at more than $300 billion.
During the same period, Berkshire retained its $75 billion stake in Apple Inc. (NASDAQ:AAPL) while reducing its stakes in Bank of America Corporation (NYSE:BAC), $Citigroup Inc(C-N)$. (NYSE:C), and Capital One Financial Corporation (NYSE:COF).
Also Read: Berkshire Hathaway Adjusts Portfolio, Keeps Apple Stake Unchanged, Offloads Stakes in BofA
Interestingly, Berkshire completely divested its stake in Ulta Beauty Inc. (NASDAQ:ULTA). The company’s annual letter to shareholders, which usually sheds light on its investment decisions, is due later this month.
Why It Matters: Berkshire Hathaway’s recent investment decisions indicate a strategic shift towards companies that have demonstrated resilience and growth potential amidst market volatility.
The significant increase in stakes in Domino’s Pizza, Pool Corp, and the initiation of a substantial stake in Constellation Brands, underscores Berkshire’s confidence in these companies’ future performance.
The divestment from Ulta Beauty and the trimming of stakes in several major banks suggest a cautious approach towards sectors that may face headwinds in the current economic climate.
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