(BFM Bourse) – Berkshire Hathaway, the conglomerate of the famous investor, has invested in 1.28 million shares of the famous pizza company, according to stock market documents published Thursday.
Known for his love of Coca-Cola (he owns $29 billion in shares of the soda group), Warren Buffett has set his sights on another consumer company.
According to documents published Thursday evening with the SEC, the American stock market watchdog, Berkshire Hathaway, the investment company of the famous billionaire, acquired 1.28 million Domino's Pizza shares, or approximately 3.6% of the total . Which represents an amount of 549 million dollars.
This announcement gives a small boost to the action of the famous pizza group, the title gaining 2% on Wall Street at the start of the session.
Still according to this document, Berkshire Hathaway also invested $152 million in the capital of Pool, a swimming pool distributor.
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Massive load shedding and mountains of cash
These purchases come after Warren Buffet significantly reduced the size of important lines of his portfolio in recent months. Berkshire Hathaway lowered its stake in Apple to $69.9 billion at the end of the third quarter of 2024, after peaking at $178 billion in 2023, notes the Financial Times.
“The Oracle of Omaha” has also sold shares of Bank of America since mid-July, thus falling below the threshold of 10% of the capital. Which allowed him to raise around $10.5 billion, according to Bloomberg.
The upshot is that at the end of September, Berkshire Hathaway had a staggering mountain of cash, around $325.2 billion.
“Warren Buffett, known for his interest in only investing in low-risk, high-potential opportunities, seems to be banking on accumulating liquidity in a market that he perceives as overvalued,” John Plassard pointed out at the beginning of the month , investment advisor at Mirabaud. “This decision is part of a long-term vision, in which the company continues to seek profitable investments, without haste, in an uncertain economic context and an expensive stock market,” he added.
“We would love to use it (this cash) but we won't do it until we think we can do something that has little risk and can make us a lot of money,” Warren Buffet explained in May to its shareholders, cited by Bloomberg.
We must therefore believe that the businessman has discerned an interesting risk/return couple at Domino's Pizza.
Julien Marion – ©2024 BFM Bourse
