Berkshire Hathaway Dumps Domino's Stock Amid Slowing Growth

Berkshire Hathaway, led by new CEO Greg Abel, sold all of its Domino's Pizza stock this year. This move is part of a larger overhaul of Berkshire's investment portfolio, which saw the sale of 16 stocks since Abel took over.

The sale of Domino's marked a reversal for Berkshire, which had spent several quarters building up a nearly 10% stake in the pizza chain. Since Berkshire began buying shares in the second quarter of 2024, Domino's stock has lost about a third of its value due to slowing growth and increased competition.

New CEO Greg Abel, who took over at the beginning of this year, embarked on a massive overhaul of the investment portfolio during the first quarter. In addition to selling Domino's, he also dumped other notable names like Amazon, Visa, and Mastercard, while tripling Berkshire's stake in Alphabet.

Despite Domino's recent issues, author Matt DiLallo still believes in the company's long-term growth story. He points to the company's solid overall growth, with global retail sales rising 3.4% in the first quarter and 3% in the second quarter. Domino's is also generating lots of cash, which it is using to invest in the business and return value to shareholders.