Yahoo Finance·2025-09-15 12:15Group 1: Berkshire Hathaway's Investment Strategy - Berkshire Hathaway has made small investments in relatively small companies, including Pool Corp with a stake worth $1.1 billion and Domino's Pizza with a stake worth $1.2 billion, representing 9.3% and 7.8% of their respective companies [2] - Over the last four quarters, Buffett has purchased approximately $12 billion worth of stocks while selling around $58 billion [3] - Buffett has indicated that finding significant investment opportunities is challenging due to high valuations in the market, particularly for large-cap stocks [4] Group 2: Pool Corp - Pool Corp is characterized as a stable business with predictable revenue, primarily from pool maintenance, which accounts for 64% of its sales [8][9] - The company has a significant market position, allowing it to maintain higher margins and manage costs effectively, especially in light of potential tariffs [9] - Pool Corp's stock has underperformed recently, providing Buffett an opportunity to invest as it trades near its historical average P/E ratio [10] Group 3: Domino's Pizza - Domino's Pizza is the largest pizza company globally, with over 20,000 stores, benefiting from a strong loyalty program and a fortressing strategy that enhances delivery efficiency [13][14] - The company has seen a 5.8% growth in carryout comparable sales, indicating strong performance in its business model [14] - Domino's has a capital-light business model, with a 20% increase in trailing 12-month free cash flow, which supports dividend growth and share buybacks [16]