Over a half-dozen prominent asset managers are dumping shares of Berkshire Hathaway's newest addition.There's a reason Warren Buffett is the most-followed billionaire money manager on Wall Street. Since becoming CEO of Berkshire Hathaway (BRK.A 0.70%) (BRK.B 0.95%) in the mid-1960s, the appropriately named "Oracle of Omaha" has overseen a scorching-hot aggregate return that surpassed 5,800,000%, as of the closing bell on Nov. 26.Given Buffett's fairly consistent outperformance of the benchmark S&P 500, both ...

Domino’s Pizza Inc. (NYSE: DPZ) has witnessed a remarkable turnaround, with its stock climbing to $472, marking a 7% increase over the past five days and a 13% rise over the past month. The company has defied challenges in the restaurant industry, delivering a strong financial performance that has drawn significant attention from institutional investors.With Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A, BRK.B) recently acquiring a 3.65% stake in Domino’s Pizza, the company’s scalable business model and ...

Core Investment Thesis - Berkshire Hathaway has purchased nearly 1.3 million shares of Domino's Pizza, indicating confidence in the company's potential for growth and profitability [2][14] Group 1: Business Understanding - Domino's Pizza is the largest pizza business globally, with over 21,000 locations, primarily operated by franchisees, which simplifies the business model [5][4] - The company's main objectives include maintaining brand awareness and ensuring franchisee profitability, with operational risks managed by third-party franchisees [6][4] Group 2: Competitive Advantage - Domino's generates a significant portion of its revenue from supply chain services, with over $650 million in supply chain revenue in fiscal Q3 2024, accounting for 60% of total revenue [7][8] - The scale of Domino's supply chain provides efficiencies and incentivizes franchisees to utilize its services, creating a competitive advantage or "moat" [9][8] - Domino's operating margin stands at 18.49%, significantly higher than its main competitor, Papa John's, which has an operating margin of 6.58% [10][9] Group 3: Shareholder Returns - Domino's pays a growing dividend and regularly repurchases shares, aligning with Warren Buffett's preference for companies that return cash to shareholders [11][12] - The average diluted shares outstanding for Domino's has decreased over the years, enhancing shareholder value as the share count declines [13][12] Group 4: Long-term Value Creation - Domino's Pizza is positioned to create long-term shareholder value due to its strong business model, competitive advantages, and commitment to returning capital to shareholders [14]

Core Insights - Berkshire Hathaway, led by Warren Buffett, has seen a cumulative return of nearly 5,700,000% since the mid-1960s, significantly outperforming the S&P 500 over six decades [1][2] - Buffett has been a net seller of stocks for eight consecutive quarters, but recently increased his stake in Domino's Pizza, indicating a shift in investment focus [4][11] Company Focus: Domino's Pizza - Domino's Pizza shares have increased approximately 7,000% since its IPO 20 years ago, reflecting strong long-term performance [12] - Buffett's recent purchase of 1,277,256 shares of Domino's during the third quarter highlights its status as his new favorite stock [11] - The current share price of Domino's is around $439, which may lead to considerations for a stock split to make shares more accessible to retail investors [13][14] Strategic Initiatives - Domino's management has implemented a five-year "Hungry for MORE" initiative aimed at enhancing product quality, operational excellence, customer value, and brand growth [14][15] - The company achieved 5.1% global retail sales growth in the third quarter, maintaining a strong track record with 31 consecutive years of same-store sales growth in international markets [15] - Domino's has successfully rebuilt consumer trust through a transparent marketing campaign that acknowledged past shortcomings, contributing to its positive brand perception [16]

Warren Buffett's Berkshire Hathaway recently released its latest 13-F filing to the Securities and Exchange Commission (SEC). Buffett's team has been a net seller of stocks in recent quarters. Hence, it may have come as a surprise to many analysts when it opened a position in Domino's Pizza (DPZ 1.68%) stock.The news led to a temporary bump in the average share volume of Domino's stock and its stock price. However, investors buy individual stocks for many reasons, and not all billionaire stock picks are sui ...

Core Viewpoint - Berkshire Hathaway has initiated a position in Domino's Pizza, reflecting Warren Buffett's investment philosophy that emphasizes steady cash flow and strong brand recognition rather than speculative opportunities [1][2]. Company Investment Strategy - Berkshire Hathaway typically invests in a limited number of stocks, around 40 to 50, and holds onto major positions for extended periods, contrasting with other institutional investors who diversify across hundreds of securities [3]. - Successful investments by Berkshire include major consumer brands like Coca-Cola and Apple, which have established strong market moats, similar to Domino's brand recognition in the pizza industry [4]. Financial Performance - Domino's has demonstrated consistent cash flow growth over the past decade, aligning with Buffett's preference for businesses that generate steady cash flow [5]. - The company has reported positive same-store sales growth, with U.S. same-store sales showing a slight decline of 0.6% in Q3 2023, followed by growth in subsequent quarters [7]. - International same-store sales have shown more resilience, with a 3.3% increase in Q3 2023 [7]. Market Position and Valuation - Domino's is priced at a premium compared to its closest peer, Papa John's, with a forward P/E ratio of 26.66, indicating a strong market position despite not being in high-growth sectors like AI [9][10]. - The long-term track record of Domino's justifies its premium valuation, making it a compelling buy-and-hold opportunity according to Buffett's recent investment [11].

People can debate their favorite toppings or preferred style of crust, but it's hard to find someone who doesn't love pizza. For more than 60 years, Domino's Pizza (DPZ 1.68%) has translated that universal constant into a globally recognized brand and wildly successful franchise business.Since the company's initial public offering in July 2004 at $14 per share, the stock has returned 7,058%, including an ongoing 12-year streak of consecutive annual dividend increases. Indeed, there's a lot to like about thi ...

Warren Buffett's Berkshire Hathaway has created tremendous wealth for shareholders, and a key component of those returns stems from buying shares of strong businesses at attractive prices relative to their estimated worth. The company held an equity portfolio worth $271 billion in the third quarter, and one of its new buys was Domino's Pizza (DPZ -0.19%).It's a small position for Berkshire, making up less than 1% of the company's stock portfolio. Given the small stake, it was probably chosen by one of Buffe ...

The latest Berkshire Hathaway 13F filing came out last week detailing the holding company's buys and sells, and there were a few surprises. Warren Buffett waded into Pool Corporation (POOL -0.29%) and munched on Domino's Pizza (DPZ -0.19%) for the first time.These stocks definitely fit the typical Buffett investing schema in some ways, but in other ways they aren't what you might expect from the investing giant. The ways in which they are different are the key to understanding how Buffett is viewing the mar ...

I previously covered Domino's Pizza, Inc. (NYSE: DPZ ) back at the end of May with the article titled " Domino's Pizza: Currently Trading At An Extended Valuation ," and designated the stock a sell due toI've been investing for over 7 years with a focus on long term wealth creation through value growth investing, value investing, and dividend investing. I'm not a financial advisor or financial planner. I do not have a formal background in finance, I have a B.S. in Biology with a concentration in molecular c ...