Warren Buffett’s Berkshire Initiates Positions In Domino’s Pizza, Pool Corp: Does Retail Share The Sentiment?

Investment guru Warren Buffett’s Berkshire Hathaway, Inc.’s ($BRK.B) ($BRK.A) 13F filed with the SEC late Thursday showed fresh positions in Domino’s Pizza, Inc. ($DPZ) and Pool Corp. ($POOL).

The investment holding company picked up 1.28 million shares of Ann Arbor, Michigan-based Domino's, with the stake valued at $549.40 million. Berkshire also bought 404,057 shares of Covington, Louisiana-based Pool, which is a wholesale distributor of swimming pool and related backyard products. The value of the stake is $152.25 million.

Domino’s stock has grossly underperformed the broader market this year, having added 6.8% year-to-date versus S&P 500’s 25% jump. Earlier this month, CNBC Mad Money host Jim Cramer named Domino’s as a buy in an episode of the Mad Money show he hosts.

The company’s reported sub-par revenue growth for the third quarter although the bottom-line exceeded expectations.

Retail sentiment toward the stock improved following Buffett’s new position. On Stocktwits, the sentiment meter showed a score of 95/100 corresponding to 'extremely bullish' stance and message volume spiked to 'extremely high.'

Messages on the platform, however, revealed mixed sentiment. 

One of them said when Buffett buys, he buys a significant number and predicts the stock could soon rally to $500.

Another touted CAVA Group, Inc. ($CAVA) as a better stock.

Some users expressed uneasiness over the elevated P/E multiple for the stock.

While Domino’s stock climbed 7.80% to $469.99 in after-hours trading on Thursday, Pool ended after-market hours at $379.25, up 6.09%. The latter is down over 9% for the year.

The retail sentiment toward Pool turned 'extremely bullish' (97/100), accompanied by 'extremely' high message volume.

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