Berkshire Hathaway Makes Key Moves in Apple and Domino’s Pizza

Warren Buffett oversees the majority of Berkshire Hathaway‘s investment decisions. In the first quarter, Berkshire made significant moves regarding Apple (NASDAQ: AAPL) and Domino’s Pizza (NASDAQ: DPZ).

• Berkshire retained its 300 million shares of Apple, which represent over 20% of its portfolio, despite ongoing tariff uncertainties.
• Berkshire acquired 238,613 shares of Domino’s Pizza, a company that has seen a 4,500% increase in stock value over the last 15 years. This position remains under 1% of Berkshire’s portfolio.

Here’s what investors should consider about Apple and Domino’s Pizza.

Apple’s Recent Performance

Apple reported a revenue increase of 5% to $95 billion for its second quarter of fiscal 2025. This growth was propelled by strong services sales, which offset a slight rise in iPhone sales. GAAP earnings per diluted share rose 8% to $1.65 as Apple continued its stock repurchase program. However, CEO Tim Cook expressed concerns about limited visibility due to tariffs.

The investment rationale for Apple lies in its global smartphone leadership and its strong presence in electronics markets. Nonetheless, the company must effectively monetize its large installed base of over 2.35 billion devices through services, including App Store fees and subscriptions.

Investors are cautious about Apple’s ability to profit from artificial intelligence (AI), particularly after a disappointing launch of Apple Intelligence in October. The anticipated iPhone upgrade cycle has also not materialized, while the rollout of enhancements to Siri has been delayed.

Currently, Apple Intelligence is free, but analysts anticipate it may eventually be monetized. However, revenue growth is projected to align with an annual increase of just 4% in smartphone sales until 2029.

Recent changes in U.S. trade policies pose additional risks for Apple. Although tariffs on Chinese imports may have eased, a potential 25% tariff looms if Apple shifts more production to India.

While long-term prospects remain uncertain, with shares trading at 31 times earnings and an 8% quarterly earning increase, prospective investors may want to hold off. Existing shareholders confident in Apple’s future can choose to stay invested, as Buffett has.

Domino’s Pizza: First Quarter Overview

Domino’s reported mixed financial results in the first quarter. Revenue rose 2.5% to $1.1 billion, falling short of consensus estimates. Conversely, GAAP net income surged 21% to $4.33 per diluted share, exceeding forecasts of $4.07.

The investment thesis for Domino’s focuses on its size and operational strength, making it the world’s largest pizza company. The company’s history of innovation and effective promotional strategies supports its competitive edge.

Domino’s employs AI and robotics for operational efficiency, including centralized dough production and AI-driven inspections. The “Hungry for More” strategy aims for 7% annual sales growth, 8% operating income growth, and 1,100 new store openings by 2028. However, in the first quarter, results fell short of expectations.

Wall Street projects earnings growth at 6% per year through 2026, making the current valuation of 27 times earnings appear high. Investors may want to remain cautious about this stock, particularly given the recent addition to Berkshire’s stake.

Is Apple a Good Investment Now?

Before considering an investment in Apple, keep these points in mind:

Research suggests that Apple is not among the top investment options currently. Analysts have identified ten stocks with potential for significant returns that don’t include Apple.

Trevor Jennewine has no positions in any stocks mentioned. The analysis provided reflects personal opinions and may not align with those of associated organizations.