Billionaire Warren Buffett Sold 45% of Berkshire's Stake in Bank of America and Is Piling Into a Famed Consumer Brand That's Soared 6,600% Since Its IPO

For most investors, earnings season is the most meaningful quarterly event. This is the six-week period where a majority of S&P 500 companies announce their operating results for the latest quarter, providing investors with insight into the health of corporate America.

But a strong argument can be made that the filing of Form 13Fs with the Securities and Exchange Commission each quarter is just as important.

A 13F is a required filing no later than 45 calendar days following the end of a quarter for institutional investors with at least $100 million in assets under management. The deadline to file 13Fs that detail third-quarter trading activity for money managers was Nov. 14.

Although 13Fs have their flaws -- the snapshot they provide can be up to 45 days old when filed -- they can offer invaluable information as to which stocks, sectors, industries, and trends have piqued the interest of Wall Street's most successful asset managers.

Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.

There isn't a money manager on Wall Street who tends to garner more attention than Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) soon-to-be-retiring CEO, Warren Buffett. The aptly named "Oracle of Omaha" has crushed the benchmark S&P 500 in the return column during his six decades as CEO, and his investments have, more often than not, made investors richer.

Following the closing bell on Nov. 14, Berkshire filed its much-anticipated 13F for the September-ended quarter. What it showed was persistent selling activity in what once was Berkshire's No. 2 holding, Bank of America (NYSE: BAC). On the other hand, Buffett green-lit the purchase of shares of a well-known consumer-facing brand for a fifth consecutive quarter.

Nearly 465 million shares of Bank of America have been shown to the door

While a sizable portion of Berkshire Hathaway's trillion-dollar market cap is the result of Warren Buffett's investing prowess (whether making acquisitions or buying stakes in public companies), the Oracle of Omaha's short-term actions and long-term ethos don't always align.

Berkshire Hathaway's billionaire boss has been crystal clear that he won't bet against America. He's keenly aware that the U.S. economy and stock market have both steadily grown over extended periods.

At the same time, Buffett is an unwavering stickler when it comes to stock valuations. Even if he highly values a company's management team, he simply won't buy or hold shares if he doesn't feel as if he's getting a good deal. For 12 consecutive quarters, Warren Buffett has been a net seller of stocks, to the tune of $184 billion.

Since July 2024 (a span of five quarters, or 15 months), 13F filings show that Buffett has overseen the sale of 464,781,994 shares of Bank of America stock, also known as "BofA," which equates to a 45% reduction. While it remains Berkshire's third-largest holding by market value, this represents a substantial haircut since mid-2024.

One fairly obvious reason for this selling is simple profit-taking. During Berkshire's annual shareholder meeting in May 2024, Buffett intimated that peak marginal corporate income tax rates were likely to rise at some point in the future. Berkshire's chief used this point as justification for paring down his company's stake in Apple. Even though BofA wasn't mentioned in this discussion, it nevertheless represents a sizable unrealized gain for Buffett's company.

However, there may be more to this selling than just profit-taking.

For instance, BofA is the most interest rate-sensitive of America's money-center banks. When the central bank rapidly increased interest rates from March 2022 to July 2023 to combat soaring inflation, Bank of America's interest income benefited immensely. Yet the reciprocal may be true with the Fed now in a rate-easing cycle. Buffett's selling activity may be in anticipation of future rate cuts by the central bank and the expected adverse impact on BofA's interest income.

The other potential concern with Bank of America stock is that it's no longer a phenomenal bargain. When Warren Buffett first invested in BofA preferred stock in August 2011, BofA's common stock was valued at 68% below its listed book value per share. As of the closing bell on Nov. 14, Bank of America stock clocked in at a 38% premium to its book value.

Image source: Getty Images.

Berkshire's billionaire boss has purchased shares of this winner for five straight quarters

Although Buffett has been a net seller of equities since Oct. 1, 2022, he has done some selective buying. According to the latest 13F, the Oracle of Omaha purchased shares of consumer-facing fast-food restaurant chain Domino's Pizza (NASDAQ: DPZ) for a fifth straight quarter.

Here's a quarterly breakdown of Berkshire's buying activity of Domino's Pizza stock:

• Q3 2024: 1,277,256 shares purchased
• Q4 2024: 1,104,744 shares purchased
• Q1 2025: 238,613 shares purchased
• Q2 2025: 13,255 shares purchased
• Q3 2025: 348,077 shares purchased (2,981,945 total shares held)

In just 15 months, Buffett's company went from not having a stake in Domino's to owning a shade over 8.7% of the company's outstanding shares.

Since Domino's initial public offering (IPO) in July 2004, its shares have skyrocketed by nearly 6,600%, including dividends paid. Gains of this magnitude don't occur by accident. They're a reflection of Domino's ability to build trust with consumers and use its innovations as a springboard to improve sales and profits.

In the late 2000s, the business was struggling, and management made what was then a risky decision to employ a mea culpa advertising campaign, which admitted the company's past mistakes and transparently laid out the steps being taken to make things right. Keeping its messaging open and transparent has helped the company grow its customer base and retain existing clients.

Domino's Pizza has also done an excellent job of exceeding its various five-year strategic initiatives. Its newest plan, dubbed "Hungry for MORE," relies on artificial intelligence to improve product output and the company's supply chain. Furthermore, it emphasizes the value of its franchisees and team members as a means to enhance the brand.

Another reason Domino's has been virtually unstoppable is its overseas expansion. In 2024, the company wrapped up its 31st consecutive year of positive international same-store sales growth. This overseas growth runway remains robust.

Last but not least, Domino's Pizza offers a healthy capital-return program -- which is something Warren Buffett appreciates in well-run public companies. Domino's regularly repurchases its stock and has been increasing its base annual dividend for more than a decade.

Bank of America is an advertising partner of Motley Fool Money. Sean Williams has positions in Bank of America. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, and Domino's Pizza. The Motley Fool has a disclosure policy.