Right Before Retiring, Warren Buffett Dumped Shares of Amazon and Apple and Bought 368,000 Shares of This Restaurant Stock

Warren Buffett is no longer the CEO of Berkshire Hathaway, but the company just released its latest 13F filing detailing the last trades under his leadership. There were few trades and only one new position.

Although Buffett maintained Berkshire's position in Alphabet, he pared down its positions in the other artificial intelligence (AI) stocks in the portfolio, Apple and Amazon. Apple is still the largest position in the portfolio at 19.5%, but that's a far cry from the 50% it had reached a few years ago. Amazon was always a small position, and now it's even smaller.

Buffett added to a few other positions, including a relatively new stake in Domino's Pizza (NASDAQ: DPZ). Berkshire added 368,055 new shares worth $109 billion, a 12% increase from last quarter.

Domino's is a stock that's right up Buffett's alley. But it took him years to buy it, and there may be another reason it's looking good right now.

Image source: Domino's.

The leading global pizza shop chain

Domino's is the largest pizza shop chain in the world, with 22,000 global stores. It's always opening new ones, too, including 392 net new stores in the fiscal 2025 fourth quarter (ended Dec. 28, 2025). Buffett loves an industry leader, especially in an area that will always have a place in the economy and that's resilient. It's the pizza version of an Apple or an American Express.

That's what's playing out today. Despite stubborn inflation and changing technological trends, people all over the world continue to buy pizza. In the fourth quarter, global retail sales increased 4.9% year over year (currency neutral), and comparable sales were up 3.7%.

Domino's is a franchise business, which means it makes money on franchise fees, not pizza. That's a high-margin business. Operating income outpaced sales growth in the fourth quarter, with company net revenue up 6.4% year over year and operating income up 8%.

Is this a warning about the market?

Domino's stock hasn't performed well recently, down 14% over the past year. It pays a dividend that yields 1.7% at the current price, and it's steady and reliable. Domino's isn't a growth stock, but it provides value in its stability and passive income.

Buffett's purchase doesn't necessarily tell investors anything more than that he likes its leadership position and resilience. But as the market reaches new highs and remains expensive, it's a reminder that all investors should have a diversified portfolio that includes market leaders. If the market does crash at some point, you'll want some Domino's-style stocks in your portfolio to protect your funds, and if it continues to rise, you'll benefit from long-term value and dividends.

American Express is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in American Express and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Berkshire Hathaway, and Domino's Pizza. The Motley Fool has a disclosure policy.