Warren Buffett Recently Invested in a Pizza Stock: 3 Reasons the Strategy Could Work for You
Warren Buffett made headlines in early 2025, when he announced that Berkshire Hathaway had closed its entire position in two S&P 500 index funds . The Oracle of Omaha had done it again, exiting his position just a few months before the so-called “Liberation Day crash” in early April 2025. But that wasn’t the only move Buffett made.
Advertisement: High Yield Savings Offers
Find Out: 15 Investments Warren Buffett Regrets
Read Next: How Far $750K Plus Social Security Goes in Retirement in Every US Region
Before selling its position in the S&P 500 funds, Berkshire purchased more than 1 million shares of Domino’s Pizza stock, valued at nearly $550 million. Given Buffett’s incredible track record, it’s worth asking whether the same investment could make sense for your own portfolio .
Why Buffett’s Strategy Could Work for You
It’s never a good idea to buy an asset just because someone you respect did it first. But you might want to follow the same idea once you fully understand it . So by exploring why Buffett bought Domino’s stock, you can decide whether to do the same.
Here are three reasons the strategy could work for you.
Learn More: Suze Orman: 3 Biggest Mistakes You Can Make as an Investor
1. Domino’s Focus on Technology
First, Domino’s uses technology better than its peers. This helps it operate more efficiently while providing extra value to its customers. For example, the chain is leveraging AI to anticipate online orders and prepare pizzas before customers purchase them. This reduces delivery times, improving the customer experience and driving more loyalty.
Domino’s is also:
2. An Expanding Business
Buffett also probably likes how Domino’s is expanding its business: The company has plans to open 1,100 new stores in the next five years. It expects its sales to grow by 7% annually and its operating income to grow at 8% per year. This kind of expanding presence bodes well for the company’s future profitability.
3. Growing Market Share
Another major trend to watch is Domino’s market share in the quick-service pizza industry. In 2024, the company took another percent of the total market from competitors like Papa John’s and Pizza Hut.
This means Domino’s isn’t just growing in an absolute sense; it’s taking over more of its sector. So if you believe the quick-service pizza industry is poised for continued growth , Domino’s could be the best way to bet on that, assuming the trend remains intact.