By Jonathan Stempel
(Reuters) -Warren Buffett's Berkshire Hathaway (NYSE:BRKa) said on Thursday it made new investments in Domino's Pizza (NYSE:DPZ) and Pool Corp (NASDAQ:POOL) in the third quarter, even as it retrenched from stocks such as Apple (NASDAQ:AAPL) and Bank of America.
Berkshire owned 1.28 million Domino's shares worth about $549 million as of Sept. 30. It also owned 404,000 shares of Pool, a distributor of swimming pool supplies, worth about $152 million as of that date.
The investments were disclosed in a U.S. Securities and Exchange Commission filing detailing Berkshire's U.S.-listed investments as of Sept. 30.
Domino's shares rose 6.9% and Pool shares rose 5.7% after market hours following Berkshire's disclosures.
Shares often rise after Berkshire reveals new investments, reflecting investors' belief that Buffett may be providing a seal of approval.
Thursday's filing does not say whether Buffett or his portfolio managers Todd Combs and Ted Weschler are responsible for individual investments.
Neither Domino's nor Pool immediately responded to requests for comment.
Like chains such as McDonald's (NYSE:MCD), Domino's has been conducting more promotions to attract value-oriented diners, including those shunning higher-priced sit-down chains in favor of upscale fast food or home delivery.
Pool, meanwhile, last month said demand for non-discretionary repair and maintenance services for existing pools partially offset "soft" demand for new pool construction.
Berkshire made the investments even as Buffett amasses cash.
The Omaha, Nebraska-based conglomerate has in 2024 nearly doubled its stake in cash and equivalents to $325.2 billion as of Sept. 30, and even halted repurchases of its own stock for the first time since 2018.
Berkshire sold $36.1 billion of stocks and bought just $1.5 billion in the quarter ended Sept. 30. For the year, Berkshire has sold $133.2 billion of stocks -- primarily Apple, followed by Bank of America -- and bought just $5.8 billion.
Buffett hasn't said definitively why Berkshire is cutting back, though taxes may be a factor. Investors have said he may believe valuations have grown too high.
The cash also gives Berkshire, whose market value is about $1.01 trillion, room to still make a needle-moving acquisition while Buffett, 94, remains in charge.
During the quarter, Berkshire also added to its holdings in aircraft parts maker Heico.
It sold its entire stake in flooring retailer Floor & Decor and some shares of Capital One (NYSE:COF), Charter Communications (NASDAQ:CHTR), Brazilian digital bank operator Nu Holdings (NYSE:NU) and cosmetics chain Ulta Beauty (NASDAQ:ULTA).
The sale of more than 96% of its Ulta shares marked a quick turnaround for Berkshire, which first disclosed investing in Ulta in August. Ulta shares fell 3.8% after hours.
Berkshire also owns dozens of companies including Geico car insurance, the BNSF railroad and a variety of consumer, energy, industrial and retail businesses.