Buffett Shifts from Bank of America to Domino’s Pizza in Strategic Portfolio Overhaul

Warren Buffett’s Berkshire Hathaway has dramatically reduced its stake in Bank of America by 39% over three consecutive quarters, signaling a strategic pivot away from traditional banking stocks. The MOVE comes as Bank of America trades at a 20-30% premium to book value, while Domino’s Pizza—a new Berkshire holding—has delivered 7,700% returns since its IPO.

SEC filings reveal Berkshire sold over 401 million BOA shares since July 2024, when it held more than 10% of the bank’s outstanding shares. The consumer sector now appears favored, with Domino’s joining Berkshire’s $276 billion portfolio as Bank of America falls to fourth position.

The shift underscores Buffett’s preference for proven consumer brands in current market conditions. "When valuations become stretched, even Core holdings lose their luster," observes one analyst, noting the systematic nature of Berkshire’s divestment from financials.