Warren Buffett Reduced His Stake in Bank of America by 29% and Purchased This Consumer Stock for Four Straight Quarters.

Warren Buffett Steps Down as CEO of Berkshire Hathaway

Warren Buffett has officially resigned as CEO of Berkshire Hathaway but will continue to hold the position of chairman of the board. His influence and teachings will likely endure through the principles he instilled in the team at Berkshire, as well as through the diverse investments he managed in the company’s extensive stock portfolio.

Berkshire Hathaway tends to adopt a buy-and-hold strategy for its stocks, meaning many of the investments Buffett selected are expected to remain for the long haul, possibly spanning many years.

Interestingly, in his final years as CEO, Buffett sold off a significant 29% stake in Bank of America and focused on building a position in consumer inventory stocks, including Domino’s Pizza, for four consecutive quarters.

Buffett and Berkshire had been long-time supporters of Bank of America until the pandemic shifted their strategy. During this challenging time, they reduced their bank holdings but kept a few key positions, including Bank of America, which remained one of their top investments.

As of the close of the third quarter in 2025, Bank of America continued to hold a prominent place in Berkshire’s portfolio, even after the sale of 29% of its shares earlier. The performance of bank stocks has been relatively strong, though investors’ concerns about evaluations have led to a sell-off in this sector as 2026 began. For those looking to diversify away from the tech-heavy artificial intelligence investments, banks could be a reasonable option.

Despite the partial sale of Bank of America shares, Berkshire also invested in Domino’s Pizza stock for four quarters running, accumulating nearly $1.3 billion by the third quarter of 2025.

It’s worth noting that Domino’s Pizza has been facing challenges recently, with a drop in stock price exceeding 21%. Although the company boasts a robust delivery network, it contends with stiff competition from other food service businesses and is grappling with inflation and rising labor costs. However, Berkshire’s strategy often allows for early investments, trusting in their long-term potential.

Domino’s remains a resilient player, benefiting from the inherently stable demand for pizza and its capacity for market growth even during economic downturns.

The company embraces technology with a well-received app and typically efficient delivery. Management appears focused on recovery through various strategies, such as offering competitive pricing, launching new menu items, and emphasizing profitable growth.