Warren Buffett, well-known as “The Oracle of Omaha,” continues to be a significant player in the investment landscape, particularly through his role as Chairman of Berkshire Hathaway. Under his stewardship, the company flourished, evolving from a small textile enterprise into a vast conglomerate. Buffett’s investment philosophy, heavily inspired by Benjamin Graham, underlines the importance of thoroughly understanding businesses, investing in firms with strong long-term potential, and seeking shares at significant discounts to their intrinsic values. This disciplined approach has repeatedly demonstrated its effectiveness, allowing Buffett’s investment decisions to be closely watched by investors around the world.
In the third quarter of 2024, Berkshire Hathaway made notable additions to its investment portfolio, acquiring new stakes in two companies: Domino’s Pizza and Pool Corp. The purchase of 1,277,256 shares of Domino’s Pizza, valued at about $549.4 million, highlighted Buffett’s appreciation for the pizza chain, which constituted 0.21% of the overall portfolio. Alongside that, Berkshire Hathaway also invested in Pool Corp, acquiring 404,057 shares valued at approximately $152.25 million, making up 0.06% of the portfolio. These strategic moves reflect Buffett’s keen eye for companies with promising growth trajectories.
Buffett also ramped up his investments in existing holdings during this quarter, particularly in Sirius XM Holdings and Heico Corp. The addition of 3,774,673 shares of Sirius XM brought his total shares in the company to over 105 million, representing a 3.72% increase and maintaining a total valuation of $2.49 billion. Meanwhile, Heico Corp received a modest boost with 5,445 additional shares, culminating in a total of 1,049,687 shares valued at $213.88 million. These increases indicate Buffett’s continued confidence in these businesses amidst the current market landscape.
Conversely, the quarter also saw Buffett eliminating some positions from his portfolio, most notably the complete divestiture of Floor & Decor Holdings, resulting in the sale of all 3,977,870 shares. This move slightly impacted the portfolio negatively by -0.14%. In addition to selling out of one position, Buffett significantly reduced his stakes in six other companies, which included cuts to his holdings in well-known firms like Apple and Bank of America. Apple experienced a sizeable reduction of 100 million shares, a 25% decrease, leading to a significant impact of -7.52% on Buffett’s portfolio. The stock was trading at an average price of $223.32 during this period, with respectable returns noted for the three months and year-to-date.
Another notable reduction was seen in Bank of America Corp. Buffett trimmed his stake by 235,168,699 shares, a reduction that amounted to 22.77%, leading to a portfolio impact of -3.34%. Bank of America stock traded at an average price of $40.08 during the quarter, reflecting robust performance with a year-to-date return of 39.26%. These strategic divestitures indicate Buffett’s willingness to reassess and reallocate resources within his portfolio, possibly in response to changing market conditions or shifts in company fundamentals.
By the conclusion of the third quarter in 2024, Warren Buffett’s investment portfolio comprised 40 stocks, with notable concentrations in major companies such as Apple, American Express, Bank of America, Coca-Cola, and Chevron. The largest holdings comprised significant portions of the portfolio, with Apple alone accounting for 26.24%. Collectively, these stocks demonstrate Buffett’s classic strategy of focusing on industries and companies that show resilience and potential for long-term growth, further solidifying his reputation as one of the most influential investors in the market and underscoring the tactical decisions made to optimize his portfolio for future success.