Buffete relies on Domino shares after the sale of S&P 500 ETF News ad

Warren Buffett, long -glorified by advising retail investors to buy and conduct inexpensive index funds, said that in a recent statement his holding company left Vanguard S&P 500 ETF NYSEARCA: flightBerkshire Hathaway sold its entire position both in VOO and in its only other S&P 500 index fund in the fourth quarter of 2024, in which investors question the cost of leading technical players in the index.

Let’s take a closer look at what is happening in Berkshire Hathaway, and what kind of buffet is bought instead of VOO.

Why is Warren Buffet now selling S&P 500?

Understanding the decision to sell VOO, it is important to consider these shares in the context of the general Buffet’s portfolio. Since Voo tracks the S&P 500 and is considered a measure that allows investors to invest in a common American economy, it can be interpreted that Buffet believes that the index is currently overvalued.

There is an argument that the S&P 500 assessment has become high, especially when international competition in the technical sphere is heated. At the end of February 2025, the 12-month P/E for S&P 500 was 21.2.

This is higher than the five-year average P/E 19.8 ratio, and a 10-year average value of 18.3. The measure of price in relation to income, the growing ratio of the P/E may indicate that the prices for shares that make up the index are growing without earnings to support them. The increase in the money of the buffet is another signal for investors, which, according to the investment expert, believes a correction.

Despite these recent data, it is inaccurate that Warren Buffete is now going against his previous council to investors to bet on the American economy with the help of the index fund. The S&P 500 index funds amounted to less than 0.02% of the Berkshire portfolio in the third quarter of 2024, which means that sales of funds can hardly be considered a statement about the general economy.

This is especially true, given that the Berkshira portfolio contains many of the same shares that make up large S&P 500 indices. Amazon.com shares NASDAQ: AmznKraft Hinz NASDAQ: KHCCoca-Cola NYSE: Ko And an apple NASDAQ: Aapl Everyone remains the best assets in the briefcase of Berkshir Hateue, as well as make up the main parts of the index. Even if Buffett believes that the distortion will come, his portfolio still adheres to large investments in leading American companies.

The buffet is bought by DPZ, solid dividend

Recent applications from Berkshire Hathaway not only showed that selling activities; Data also revealed growing assets in Domino pizza NASDAQ: DPZ DPZField

Berkshire acquired 1.28 million shares at the end of the 3rd quarter – investments that have since returned investors more than 20%.

Domino’s, the leader in the competitive industry of fast service, can be a reliable long -term game for dividends investors.

The company offers a quarterly payment of dividends in the amount of $ 1.74, which is equal to a stable yield of 1.44%.

He also increased his dividends over 12 years in a row, an average annual increase of 5.41%.

Its payment coefficient of 41.70% is considered in a safe and stable zone, which contributes to its potential.

What do analysts say about DPZ?

As an investor, it is important to accept a long -term approach when choosing shares that are stored in your portfolio. Although investors’ trust indicates that the price of shares and dividend growth can be on the horizon for Domino, it is not recommended to sell shares of large market funds, such as VOO, for the purchase of shares of a separate company for retail investors.

There are also some signs that the interest of investors in DPZ may be exaggerated. Short interest increased by 5.5% to more than $ 1 billion. The United States in early March, which indicates that the number of days to cover swimming is steadily increasing. Only 0.76% of the company’s shares are also held by insiders, which is another negative indicator that can show that the trust of the common investor is not as high as the individual faith of the buffet in the company.

DPZ can still be a reliable choice for income investors, having a consensus rating of an average purchase from analysts. Investments experts predict a potential growth of 4.49% next year after about 8% of the increase in prices for last year.

While Domino’s missed his last assessment of the consensus of income of $ 0.04 per share, analysts of prediction about future income draw the same optimistic picture for the Pizza world retailer. The quarterly revenue increased by 2.9% compared to the same period last year to 1.44 billion dollars. USA, and experts predict an additional increase of 4.6% next year.

Before considering the domino pizza, you will want to hear it.

Marketbeat monitors the highest and most effective analysts with the most effective Wall Street analysts and promotions that they recommend to their customers daily. Marketbeat has identified five shares that leading analysts quietly whisper to their clients to buy now before the wider market is conquered … and Domino pizza was not on the list.

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