Just before hanging up his investing hat, Warren Buffett made a move that turned heads — selling off chunks of tech giants Amazon and Apple to scoop up nearly 368,000 shares of a pizza powerhouse. But why this sudden appetite for Domino’s Pizza?
(Editor’s note: A previous version of this story misstated the value of Berkshire Hathaway’s Domino’s investment as $109 billion; the correct figure is $109 million. The Motley Fool and the author apologize for the error.)
Warren Buffett may have stepped down as Berkshire Hathaway’s CEO, but his final 13F portfolio disclosure offers one last glimpse into his investment playbook — and it’s full of surprises. The legendary investor didn’t make many trades before retiring, but one new addition certainly sparked curiosity.
While Berkshire held steady on its Alphabet shares, Buffett trimmed positions in two major artificial intelligence (AI) names — Apple and Amazon. Apple remains Berkshire’s largest holding at around 19.5% of the portfolio, though that’s less than half the 50% dominance it once had. Amazon, meanwhile, was always a minor stake — and now it’s even smaller.
Instead, Buffett doubled down on something more tangible — pizza. Berkshire increased its Domino’s Pizza (NASDAQ: DPZ) stake by 12% last quarter, adding 368,055 shares. The position’s total value jumped by roughly $109 million. Domino’s, a business with simple economics and consistent demand, seems like a natural fit for Buffett’s value-oriented mindset.
The world’s pizza leader keeps slicing bigger margins
Domino’s Pizza isn’t just another restaurant chain — it’s the largest pizza company on Earth, operating a stunning 22,000 stores globally. And it’s not slowing down. In the final quarter of fiscal 2025, Domino’s opened 392 net new stores worldwide. Buffett has always favored companies that dominate their industries and withstand economic shifts — pizza, after all, never goes out of style.
Even as inflation and tech disruptions reshape global markets, people around the world keep ordering Domino’s. During the fourth quarter, global retail sales (on a currency-neutral basis) grew 4.9% year over year, with same-store sales up 3.7%. What’s more, Domino’s makes most of its money not by selling pizzas directly, but through franchise fees — a model that allows for high profit margins. In fact, its operating income rose 8% in the same period, outpacing 6.4% revenue growth.
But here’s where it gets interesting…
Despite all this, Domino’s stock hasn’t been a market darling lately. The share price has fallen about 14% over the past year. Still, the company pays a reliable dividend yielding 1.7%, offering investors steady income and a sense of stability that’s rare in today’s volatile market.
Does Buffett’s move hint at a larger market warning? Not necessarily — but it could signal caution from one of the world’s most respected investors. As markets continue to hit new highs, valuations are becoming increasingly stretched. Buffett’s quiet pivot toward durable, cash-generating businesses like Domino’s might be a reminder to investors everywhere: diversification and discipline still matter.
If the market corrects, steady earners like Domino’s could cushion your portfolio. And if the bull run continues, their dividends and value-driven performance may still deliver solid returns over the long term.
Here’s the real question — do you think Buffett is signaling that it’s time to rotate out of Big Tech and back into Main Street businesses? Or is Domino’s just another tasty addition to an already well-balanced portfolio? Drop your thoughts in the comments — this is a debate worth having.
