Warren Buffett, the billionaire CEO of Berkshire Hathaway, has made significant changes to his investment portfolio. According to recent filings with the Securities and Exchange Commission, Buffett sold 34% of Berkshire’s stake in Bank of America, which amounts to over 352 million shares. This move comes amid speculation about future tax rates and potential changes in the Federal Reserve’s monetary policies.
Bank of America had been one of Buffett’s major investments since 2011 when he acquired $5 billion in preferred stock. However, as the valuation of Bank of America’s common stock has increased, Buffett’s value-based investment approach may have influenced his decision to sell. On the other hand, Buffett has made a substantial investment in Domino’s Pizza.
Berkshire Hathaway now holds 2,382,000 shares in Domino’s, valued at over $1.1 billion. This investment aligns with Buffett’s preference for companies with strong brand presence and reliable management. Domino’s has undergone a remarkable transformation over the past decade.
The company’s bold marketing campaign, which openly admitted previous product failings, helped rebuild consumer trust. Domino’s has also seen success in its international expansion, with 31 consecutive years of same-store sales growth overseas.
Buffett shifts focus to consumer brands
Despite not being a bargain stock at 27 times consensus earnings per share for 2025, Domino’s strategic plans and shareholder-friendly policies make it an attractive investment for long-term gains. Buffett’s recent portfolio moves highlight his strategic shift towards sectors with strong consumer brands and growth potential. This underscores his investment philosophy of seeking value even in changing economic landscapes.
In other news, Jim Cramer’s Charitable Trust has decided to exit its position in Constellation Brands, selling 225 shares at roughly $174. This decision comes after Constellation Brands faced challenges, including a slowdown in its Mexican beer business and a struggling wine-and-spirits division. The stock’s 7% increase in premarket trading, following the news of Berkshire Hathaway’s small stake in the company, provided an opportunity for the Charitable Trust to sell its remaining shares and realize a loss of around 27%.
Lastly, while Buffett was a net seller of stocks for nine consecutive quarters, he did buy six stocks in Q4 2024. Among these purchases, Occidental Petroleum stands out as the best of the bunch. Buffett has built a much larger stake in Occidental compared to the other stocks purchased in Q4, and the company now ranks as Berkshire’s seventh-largest holding.
Buffett’s statements and actions suggest that he will likely continue buying Occidental in 2025. Although the stock’s performance this year will largely depend on oil prices, the long-term prospects appear strong.
