Warren Buffett dumped this stock — now it is surging

Core Insights - Warren Buffett, known as the 'Oracle of Omaha', is a value investor who typically invests in businesses with attractive valuations and competitive advantages [1] - Berkshire Hathaway has been a net seller of stocks for the last eight quarters, maintaining a significant cash reserve [1] - Buffett's recent decision to significantly reduce his stake in Ulta Beauty may be seen as a potential misstep, especially as the stock has recently surged [1][3] Company Analysis - Berkshire Hathaway first invested in Ulta Beauty in Q2 2024, acquiring 690,106 shares when the stock was priced between $439 and$376 [3] - In Q3 2024, Buffett reduced his stake by 96%, retaining only 24,203 shares, while Ulta Beauty's stock traded between $412 and$322 during that quarter [3] - The upcoming earnings call for Ulta Beauty on December 5 is highly anticipated, especially following Bath & Body Works' strong earnings report, which may influence Ulta's stock performance [3]