Warren Buffett's Bold Moves: Dumping Bank of America While Loading Up on a Consumer Giant

2026-01-12 15:57:35

The Selling Spree That’s Reshaping Berkshire’s Portfolio

When institutional investors file their quarterly Form 13F reports with the SEC, Wall Street pays attention — and for good reason. These filings reveal exactly what the money masters are buying and selling, offering a window into where smart capital is flowing. The latest disclosures, due by November 14 following the third quarter close, tell a compelling story about Warren Buffett’s current thinking.

The headline: Warren Buffett has been liquidating stocks for 12 straight quarters, offloading nearly $184 billion worth of equities. But the real attention-grabber is what he’s doing with specific holdings. Over the past 15 months alone, Berkshire Hathaway has exited nearly 465 million shares of Bank of America — representing a staggering 45% cut from its position. That’s significant selling from one of the world’s most deliberate investors.

Why Is the Oracle of Omaha Cutting Bait on Bank of America?

The surface explanation seems straightforward: profit-taking on an enormous unrealized gain. During Berkshire’s May 2024 shareholder meeting, Warren Buffett hinted that corporate tax rates might climb in the future, which he cited as reason to trim Apple holdings. Bank of America carries similar unrealized gains, so cashing in makes intuitive sense.

But dig deeper, and a more sophisticated thesis emerges. Bank of America happens to be the most interest-rate-sensitive among major American money-center banks. When the Federal Reserve aggressively raised rates between March 2022 and July 2023, BofA’s interest income soared. Today, with the Fed pivoting toward rate cuts, that dynamic reverses — and net interest income likely compresses.

There’s also a valuation angle. When Warren Buffett first invested in BofA preferred stock back in August 2011, the common stock traded at a 68% discount to book value. Fast forward to mid-November 2024, and the shares command a 38% premium to book value. For someone obsessed with buying undervalued assets, that’s no longer appetizing.

The Surprising New Love: Domino’s Pizza

Meanwhile, Warren Buffett’s team has been quietly accumulating a different kind of opportunity: Domino’s Pizza. Here’s the stunning part — in just 15 months, Berkshire went from zero shares to owning 8.7% of the company, making it a meaningful position.

The buying pattern across five consecutive quarters tells the story:

Q3 2024: 1,277,256 shares
Q4 2024: 1,104,744 shares
Q1 2025: 238,613 shares
Q2 2025: 13,255 shares
Q3 2025: 348,077 shares

Why does Domino’s Pizza merit this attention? Since its IPO in July 2004, the stock has returned nearly 6,600% (including dividends) — a mind-bending performance that didn’t happen by luck. The company rebuilt consumer trust through brutally honest marketing that acknowledged past mistakes. It then executed relentlessly on innovation, particularly in digital ordering and delivery automation.

The international expansion story remains particularly robust. Domino’s Pizza just completed its 31st consecutive year of positive same-store sales growth internationally. The company’s new strategic plan, “Hungry for MORE,” leverages artificial intelligence to optimize production and supply chains while reinforcing franchisee relationships.

Adding to its appeal: Domino’s Pizza maintains a shareholder-friendly capital return program that Warren Buffett clearly values. Regular share buybacks combined with over a decade of consecutive dividend increases align perfectly with his philosophy.

What This Trading Activity Reveals

When the world’s most successful investor starts dumping a major bank stock while methodically building a 8.7% stake in a consumer franchise, it signals shifting conviction. Warren Buffett’s moves often reflect his views on valuation, macro headwinds, and long-term competitive positioning — not emotional reactions.

The Bank of America exit likely reflects anticipated headwinds from lower interest rates and stretched valuations. The Domino’s Pizza accumulation suggests confidence in execution, growth runways, and fair pricing for a proven franchise operator. For investors tracking Warren Buffett’s latest thinking through Form 13F filings, these moves speak volumes about where risks and opportunities are perceived in today’s market.

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