Warren Buffett has made significant changes to Berkshire Hathaway’s investment portfolio. The billionaire investor sold 39% of Berkshire’s stake in Bank of America. He is now investing heavily in Domino’s Pizza, which has seen a remarkable 7,700% increase in value since its initial public offering.
Buffett sold over 401 million shares of Bank of America in May 2024. This marks the third quarter in a row that he has reduced Berkshire’s position in the bank. Bank of America has been one of Berkshire’s largest holdings by market value for many years.
The decision to sell may be due to concerns about the bank’s future performance as interest rates change. On the other hand, Buffett has been buying a lot of Domino’s Pizza stock. By the end of the first quarter of 2025, Berkshire owned 2,620,613 shares of Domino’s.
This represents a 7.7% stake in the pizza chain.
Buffett’s bank to pizza shift
Buffett seems to have confidence in Domino’s long-term growth plans and the trust consumers have in the brand.
Domino’s has had an impressive turnaround since 2009. The company launched a marketing campaign admitting past mistakes and promising to improve. This rebuilt consumer trust in the brand.
Domino’s has been one of the best performing stocks over the past 15 years as a result. Domino’s management has also consistently achieved ambitious growth targets. The company’s latest five-year strategy focuses on technology and supply chain improvements.
Domino’s ability to expand market share while still returning capital to investors through dividends and buybacks aligns well with Buffett’s investment preferences. Buffett’s move from financial stocks to consumer goods like Domino’s Pizza shows a shift towards industries with sustainable growth and strong consumer loyalty in a changing economy. It will be interesting to see how these investment decisions play out over time.
