### Warren Buffett Reduces Apple Stake and Invests Heavily in Domino's Pizza

Billionaire investor Warren Buffett has made a significant shift in his investment portfolio as CEO of Berkshire Hathaway. Known for his strategic investment decisions, Buffett has sold a substantial portion of his stake in Apple while making a notable investment in Domino's Pizza.

Berkshire Hathaway's recent filings with the Securities and Exchange Commission indicate that Buffett and his team sold 67% of their stake in Apple over the past year, amounting to 615.56 million shares. Despite this massive sell-off, Apple remains Berkshire's largest holding by nearly $25 billion in market value. This move is consistent with Buffett's recent trend of being a net seller of equities, totaling an aggregate of $166.2 billion since October 2022.

One of Buffett's motivations for selling Apple stock appears to be related to concerns over its valuation. Apple's high price-to-earnings ratio, currently standing at 38 times trailing-12-month earnings, might not align with Buffett's value-investing principles. Additionally, Apple’s physical product sales have seen stagnation recently, despite the robust growth in its subscription services.

In a contrasting move, Buffett's team has initiated a new position in Domino's Pizza, purchasing 1,277,256 shares valued at almost $550 million by the end of September. Domino's has been a star performer in Wall Street, with its stock soaring by more than 7,000% since its initial public offering in 2004. The fast-food giant's strategic five-year plan, "Hungry for MORE," aims to enhance operational efficiency and customer loyalty through improvements in its food offerings, operational consistency, rewards program, and franchise value.

Buffett holds a high regard for management teams that are transparent about their past mistakes and successes, traits exemplified by Domino's, especially since its turnaround campaign in the early 2010s. Domino's commitment to shareholder-friendly capital-return programs, including consistent dividend increases and share repurchases, further aligns with Buffett's investment criteria.

While Domino's impressive performance makes it an attractive investment, its current forward P/E ratio of 27 suggests that it might not be cheap. It remains to be seen whether Buffett and his team will continue to build their position in Domino's in the coming quarters.