Berkshire's Legendary CEO Reshapes Portfolio: What Buffett's Latest Form 13F Reveals About His Strategic Bets

According to recent Securities and Exchange Commission filings, Warren Buffett orchestrated a significant rebalancing of Berkshire Hathaway’s investment portfolio in the quarters leading to his 2025 retirement. The Form 13F filings—quarterly snapshots that reveal how Wall Street’s most sophisticated money managers are moving their capital—tell a compelling story about where the Oracle of Omaha saw opportunity and where he saw caution. His movements offer crucial insights into market positioning and investment philosophy.

The picture that emerges from these filings is striking: Buffett systematically reduced Berkshire’s massive Bank of America holdings while simultaneously and consistently building a substantial position in Domino’s Pizza. These weren’t random moves. Each decision reflects decades of investment experience and disciplined capital allocation.

From Longtime Favorite to Careful Exit: The Bank of America Story

For roughly ten years, Bank of America occupied a top-three position in Berkshire Hathaway’s equity portfolio. Buffett’s affinity for financial stocks was legendary—they represented his core thesis about American economic resilience. Banks benefit from economic expansion cycles that outlast recessions, allowing them to prudently grow loan books over extended periods. BofA specifically possessed another advantage that appealed to Buffett: exceptional interest rate sensitivity.

When the Federal Reserve embarked on its aggressive rate-hiking campaign between March 2022 and July 2023, Bank of America’s net interest income surged. This was precisely the kind of tailwind that made bank stocks attractive to a value-focused investor like Buffett. Yet despite these fundamentals, something shifted in his outlook.

From mid-2024 through September 2025, Buffett authorized the divestment of nearly 465 million shares—roughly 45% of Berkshire’s stake in Bank of America. The immediate explanation might be profit-taking. With corporate tax rates declining under new administration policies, locking in gains made mathematical sense. Apart from Apple, Bank of America represented one of Berkshire’s largest pockets of unrealized gains.

But the story runs deeper than tax-driven selling. Buffett’s unwavering principle was always to purchase assets at substantial discounts to intrinsic value. When he initially bought BofA preferred shares in August 2011, the stock traded at a 68% discount to book value—a classic Buffett opportunity. By January 2026, Bank of America commanded a 35% premium to book value. While hardly overvalued by absolute standards, the margin of safety had vanished. Additionally, Buffett appeared to anticipate a shift toward rate cuts from the central bank. For a bank as interest-rate-sensitive as BofA, declining rates pose meaningful headwinds to net interest income generation relative to less-sensitive competitors.

Building a New Position: Five Quarters of Domino’s Pizza Accumulation

While Warren Buffett deployed a net-selling stance across stocks for twelve consecutive quarters, select investments warranted his attention. Perhaps no company received more consistent backing than Domino’s Pizza. Beginning in Q3 2024 and extending through Q3 2025, Berkshire acquired shares in disciplined tranches:

• Third Quarter 2024: 1,277,256 shares added
• Fourth Quarter 2024: 1,104,744 shares acquired
• First Quarter 2025: 238,613 shares purchased
• Second Quarter 2025: 13,255 shares added
• Third Quarter 2025: 348,077 shares accumulated

The cumulative position of nearly 3 million shares represents approximately 8.8% of Domino’s outstanding equity. Since its July 2004 initial public offering, Domino’s stock has appreciated nearly 6,700% including reinvested dividends—a remarkable trajectory driven by three interconnected factors.

First, Domino’s earned genuine customer affection through bold transparency. In 2009, management made the counterintuitive decision to publicly acknowledge that its pizza quality fell short of expectations and committed to improvement. This admission, coupled with actual product enhancement, rebuilt trust. Buffett understood that customer loyalty—the intangible asset that doesn’t appear on balance sheets—generates durable competitive advantages.

Second, the company executed flawlessly against multi-year strategic initiatives. Rather than setting annual targets, Domino’s management designed ambitious plans spanning five years ahead. The current “Hungry for MORE” strategy emphasizes technology integration and artificial intelligence deployment to expand production capacity and strengthen supply chain resilience. This forward-thinking approach appealed to an investor who valued management execution.

Third, Domino’s possessed significant international runway. Through 2024, the company had delivered 31 consecutive years of positive same-store sales growth internationally. The business model and product resonated globally, suggesting decades of potential expansion remain ahead.

What These Moves Reveal About Market Positioning

Buffett’s portfolio adjustments reflect a calculated assessment of risk-reward positioning. He’s exiting a mature financial position where valuations no longer provided adequate margin of safety while interest rate direction had shifted. Simultaneously, he’s accumulating exposure to a consumer-facing business with demonstrated competitive moats, growing international revenue streams, and management executing against credible strategic plans.

These decisions underscore a timeless investing principle: price matters as much as quality. Bank of America remains a fine business, but at 35% premiums to book value, the risk-reward shifted unfavorably. Domino’s Pizza, conversely, presented an opportunity to partner with management executing against long-term vision while the business benefited from secular trends including technology adoption and international expansion.

For investors reviewing these Form 13F disclosures, the message seems clear: follow the cash into businesses with durable customer relationships, clear strategic direction, and reasonable valuations. That philosophy has served both Berkshire Hathaway and the broader investing community extraordinarily well for decades.