What You Need To Know
Berkshire Hathaway Inc (NYSE: BRK.B) expanded its investment portfolio in the third quarter of 2024 by acquiring stakes in Domino's Pizza Inc (NYSE: DPZ), valued at $549 million, and Pool Corp (NASDAQ: POOL), valued at $152 million. During this period, the company notably reduced its holdings in several major stocks, including Apple (NASDAQ: AAPL), where shares decreased from over 900 million to 300 million. In total, Berkshire sold $127 billion worth of stocks in the first nine months of 2024. By the end of September, cash reserves reached a record $325 billion, approximately $310 billion when adjusting for liabilities.
The performance of the new investments varied, with Domino's shares rising by 5.8% in 2024, in contrast to a 10% decline for Pool Corp. Both stocks have faced particular challenges amid changing market dynamics. Despite a strong S&P 500 performance of 25% in 2024, Berkshire's Class B shares surpassed this growth, rallying by 31%. The company's largest remaining position is in Apple, currently valued at $69.9 billion.
Why This Is Important for Retail Investors
Market Sentiment: Berkshire’s cautious approach signals potential overvaluation concerns, which retail investors should consider.
Investment Opportunities: New stakes in Domino's and Pool Corp. suggest industries with perceived long-term growth potential.
Portfolio Management Lessons: Buffett's focus on cash reserves highlights the importance of liquidity during uncertain markets.
Sector Insights: Changes in consumer and housing trends affecting Domino's and Pool Corp. offer guidance for retail investors evaluating similar stocks.
Diversification and Valuation: Reductions in Apple and other large holdings emphasize the need for diversification and careful evaluation of high-growth stocks.
Spotlight on a Unique Investment
One company is sitting on an incredible asset in the middle of a prime location where demand for its resource is not only stable but essential to the entire global economy.
It can command an impressive and resilient price, and end markets are diversified.
This company’s competitors are dealing with aging assets, while international suppliers can be displaced on distance, cost and greenhouse gas emissions.
Find out more:
A valuable long-term asset that is projected to produce solid returns for decades
50% of its production is already allocated to a strategic offtake agreement
Commodity prices are resilient
A strategically superior location
Learn more about this intriguing investment opportunity today.