Warren Buffett’s Berkshire Hathaway revealed intriguing shifts in its investment strategy during the third quarter, adding new positions in Domino’s Pizza and Pool Corp. while trimming holdings in long-time favorites like Apple and Bank of America.

The latest SEC filing offers a glimpse into the evolving appetite of the Oracle of Omaha.

A slice of the pie: Berkshire’s new Domino’s investment

Berkshire’s newfound craving for Domino’s translated into a 1.28 million share stake worth approximately $549 million as of September 30th.

This investment suggests confidence in the pizza chain’s ability to navigate the current economic landscape, where value-oriented dining options are gaining traction.

Like other fast-food giants such as McDonald’s, Domino’s has been actively promoting deals to attract budget-conscious consumers, many of whom are foregoing pricier sit-down restaurants in favor of fast casual or delivery options.

Berkshire takes a dip with Pool Corp.

Beyond pizza, Berkshire also dipped its toes into the pool supply market, acquiring 404,000 shares of Pool Corp., a leading distributor of swimming pool supplies, valued at around $152 million as of September 30th.

While Pool Corp. noted “soft” demand for new pool construction last month, the company highlighted the resilience of non-discretionary repair and maintenance services for existing pools, a factor that may have attracted Berkshire’s interest.

Market reaction: Domino’s and Pool Corp. shares rise

News of Berkshire’s investments sent ripples through the after-hours market, with Domino’s shares rising 6.9% and Pool Corp. shares climbing 5.7%.

This positive response is a common phenomenon following Berkshire’s investment disclosures, often interpreted by investors as a “seal of approval” from the renowned value investor.

While embracing pizza and pool supplies, Berkshire continued its trend of accumulating cash.

The Omaha-based conglomerate’s cash and cash equivalents nearly doubled to a staggering $325.2 billion as of September 30th.

This cash accumulation coincides with a significant reduction in stock purchases and a halt in share buybacks for the first time since 2018.

In the third quarter alone, Berkshire sold $36.1 billion of stocks while purchasing only $1.5 billion.

For the year, stock sales totaled $133.2 billion—primarily Apple, followed by Bank of America—compared to just $5.8 billion in purchases.

While Buffett remains tight-lipped about the precise reasons behind these strategic shifts, several factors may be at play.

Market observers speculate that tax considerations and potentially inflated valuations are influencing his decisions.

The substantial cash reserves provide Berkshire, with its $1.01 trillion market capitalization, the flexibility to make significant acquisitions under Buffett’s continued leadership at the age of 94.

Portfolio adjustments: a glimpse into Berkshire’s Holdings

Beyond the headline-grabbing Domino’s and Pool Corp. investments, Berkshire’s latest filing reveals other notable portfolio adjustments.

The conglomerate increased its stake in aircraft parts maker Heico while completely divesting its holdings in flooring retailer Floor & Decor.

Berkshire also trimmed positions in Capital One, Charter Communications, Brazilian digital bank Nu Holdings, and cosmetics chain Ulta Beauty.

The near-complete sale of Ulta Beauty shares, just a short time after disclosing an initial investment in August, represents a particularly rapid turnaround.

Ulta shares fell 3.8% after hours.

Berkshire’s vast portfolio continues to encompass a diverse range of businesses, including Geico car insurance, BNSF railroad, and various consumer, energy, industrial, and retail companies.

Thursday’s filing does not say whether Buffett or his portfolio managers Todd Combs and Ted Weschler are responsible for individual investments.

Neither Domino’s nor Pool have issued a statement or released any comments on the matter.

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China’s economy displayed promising signs of recovery in October, supported by an uptick in retail sales and industrial output.

These improvements reflect the impact of recent government stimulus measures aimed at revitalizing growth in key sectors.

According to the National Bureau of Statistics, retail sales grew by 4.8% from the previous year, marking the fastest pace since February and surpassing analysts’ expectations.

This is a critical indication of recovery in consumer spending, which had lagged behind production growth amid economic uncertainties.

Industrial output rose 5.3%, lower than forecast. However, Chinese steel production saw a notable recovery in October, ending four months of consecutive declines.

Retail sales growth attributed to stimulus measures

The increase in retail sales can be attributed to Beijing’s comprehensive stimulus strategies, which have included subsidizing the purchase of equipment, appliances, and vehicles.

This push to stimulate consumption helped home appliance sales skyrocket by 39% compared to the same period last year—the most significant growth seen since 2010.

The improved sales figures signal a resurgence in domestic consumer activity, an area that has been a weak link in China’s post-pandemic economic recovery.

Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd., said in a Bloomberg report, “The policymakers will be pleased to see the rally in retail sales. They’d rather sacrifice a bit of factory activity for consumption, although it is still early to tell whether the two-speed economy has ended.”

Industrial sector shows improvement

In addition to retail, industrial output rose by 5.3% in October, though it came in slightly below forecasts.

The growth signals stabilization in the manufacturing sector, buoyed by healthy margins that encouraged increased steel production.

Steel output, which had been declining for four consecutive months, rebounded by 6.2% compared to September, reaching 81.88 million tons.

This marked a 2.9% year-over-year increase, underscoring a positive shift in sentiment following state-led efforts to stimulate economic momentum.

The rebound has allowed the cumulative decline in steel production for the first ten months of the year to narrow to 3%, maintaining the industry’s trajectory toward surpassing 1 billion tons of output for the fifth year running.

However, analysts remain cautious about long-term prospects as some mills continue to face financial difficulties, and demand from the property sector—a traditional driver of steel consumption—remains subdued.

Recovery encouraging, but don’t celebrate yet

Despite these signs of recovery, Beijing faces challenges in sustaining growth, especially with weak domestic demand and an uncertain global landscape.

The National Bureau of Statistics noted, “We should be aware that the external environment is increasingly complicated and severe, effective demands are still weak at home and the foundation for continuous economic recovery needs to be strengthened.”

Further compounding concerns is the recent re-election of Donald Trump as US president, which could usher in more aggressive trade policies.

Trump has already threatened to impose a 60% tariff on most Chinese imports, posing a potential risk to China’s export-driven industries.

This could put added pressure on Beijing to enhance domestic consumption as a counterbalance to potential export setbacks.

Steel’s long-term outlook remains grim

Although October’s industrial recovery points to short-term gains, the steel industry’s long-term outlook remains precarious.

The China Iron and Steel Association has urged steelmakers to maintain production discipline despite rising prices, cautioning that structural market issues persist.

While government officials have indicated there is room for additional stimulus measures in the coming year, analysts believe these efforts might not be enough to revive demand from sectors like property development and large-scale infrastructure—key pillars that have historically fueled steel production.

Beijing’s ongoing commitment to policies that stimulate growth, such as consumer subsidies and targeted fiscal measures, will be critical to ensuring that the economic recovery is robust and sustainable.

The current signs of improvement are encouraging, but the path forward will likely require continued vigilance and strategic policy adjustments.

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Ford Motor Co. has been hit with a substantial $165 million penalty by the US government for its handling of a rearview camera recall.

The National Highway Traffic Safety Administration (NHTSA) levied the fine, the second-largest in its history, citing Ford’s delayed recall and failure to provide accurate information.

The NHTSA criticized Ford for its sluggish response to the faulty rearview camera issue, affecting over 620,000 vehicles in the US and more than 700,000 in North America.

The agency also faulted the automaker for providing incomplete information, a violation of the Federal Motor Vehicle Safety Act.

“Timely and accurate recalls are critical to keeping everyone safe on our roads,” emphasized NHTSA Deputy Administrator Sophie Shulman.

“When manufacturers fail to prioritize the safety of the American public and meet their obligations under federal law, NHTSA will hold them accountable.”

The terms of the consent order: oversight and improvements

Under the consent order, Ford will pay $65 million directly and invest $45 million in enhancing its recall compliance processes.

An additional $55 million is deferred.

The agreement also mandates independent oversight of Ford’s recall performance for at least three years, requiring the automaker’s full cooperation with the appointed monitor.

Ford is obligated to review all recalls from the past three years to ensure adequacy and issue new recalls if necessary.

The company must also revamp its recall decision-making process, including data analysis methods for identifying safety defects, and invest in technology to track parts by vehicle identification number.

Ford has committed to investing the $45 million in advanced data analytics, a new document management system, and a new testing laboratory.

Ford’s response: a commitment to continuous improvement

“We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety,” Ford said in a statement.

The automaker acknowledged the need for improvements and expressed a willingness to work with the NHTSA and the independent monitor to implement enhancements.

The company says it has learned from the camera recall.

“We look forward to working with NHTSA and the independent third party to implement further enhancements,” Ford said.

A history of camera troubles

The initial recall for the faulty rearview cameras occurred in September 2020, covering several 2020 models, including the popular F-Series pickup truck.

NHTSA documents reveal that Ford had identified warranty claims related to the cameras between February and April 2020, with the issue brought before a Ford committee in May.

The NHTSA contacted Ford about camera complaints in July 2020.

During an August 2020 meeting, Ford presented data showing high camera failure rates across several 2020 models.

Subsequently, Ford issued two additional recalls in 2022 and 2024 for the same camera problem, adding approximately 24,000 vehicles to the initial recall.

Ongoing scrutiny of Ford’s recall practices

The $165 million penalty doesn’t mark the end of Ford’s challenges with the NHTSA.

Earlier this year, the agency launched an investigation into a recall repair for Ford SUVs related to gasoline leaks and potential engine fires.

In an April 25th letter to Ford, investigators expressed “significant safety concerns” about the March 8th recall of nearly 43,000 Bronco Sport and Escape SUVs.

Ford’s proposed fix involved adding a drain tube to divert leaking gasoline and implementing software to cut off fuel supply upon leak detection.

However, the NHTSA’s Office of Defects Investigation believes this remedy fails to address the root cause and doesn’t proactively replace defective fuel injectors.

While Ford maintains it has a strong recall process and is committed to legal compliance, the company acknowledges the need for continuous improvement.

Ford said that it has a strong recall process and is committed to complying with the law, but it can always improve.

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India’s economic growth remains resilient despite concerns over Donald Trump’s return to the White House.

In an interview with CNBC, global strategist Chris Wood of Jefferies highlights that India’s fundamentals are robust enough to withstand the ripple effects of a stronger US dollar and tighter global financial conditions.

India is projected to achieve a real GDP growth of 6-8% and nominal growth of 10-12% over the next five years.

As other emerging markets grapple with the US election outcome, India’s domestic equity market continues to attract inflows, bolstering its resilience and long-term growth prospects.

Emerging markets face challenges, but India stays the course

Trump’s return to the presidency has triggered volatility across emerging markets due to the strengthening US dollar and rising Treasury yields.

This development has made it challenging for Asian central banks to pursue rate cuts, complicating monetary policy adjustments in emerging economies.

India’s economic and equity story diverges from this broader trend.

The Reserve Bank of India’s (RBI) policies are not overly reliant on aggressive rate cuts, providing stability in the face of global monetary tightening.

Indian equities see robust domestic inflows amid foreign sell-offs

The Indian equity market has demonstrated resilience against foreign investor sell-offs.

Domestic inflows have stabilised and supported the market, with significant participation from retail and institutional investors.

This dynamic has helped cushion the impact of foreign capital outflows, which are often influenced by global risk sentiment.

Rising equity supply, driven by companies capitalising on high valuations to raise capital, has led to a market correction.

According to Wood, this is a “natural and healthy” process, allowing markets to digest the increased supply without compromising their long-term potential.

The rupee’s depreciation is slowing, boosting investor confidence

India’s currency, the rupee, has historically faced annual depreciation of around 6% against the dollar.

Wood suggests that this trend is easing, with the rupee likely to stabilise in the coming years.

A slower pace of depreciation makes Indian assets more attractive to global investors and signals improving macroeconomic fundamentals.

India’s vulnerability to external shocks, such as fluctuations in oil prices, is also reducing.

As the country diversifies its energy sources and strengthens its current account position, its economic story gains further credibility on the global stage.

Trump’s policies support US equities, but risks remain

In the US, Trump’s pro-business policies, including corporate tax cuts and deregulation, are expected to boost equity markets in the short term.

However, these measures have also contributed to a stronger dollar, creating headwinds for emerging markets dependent on foreign capital.

While India benefits from strong domestic market dynamics, the global financial environment remains challenging.

For Indian policymakers and investors, balancing domestic growth with external uncertainties will be critical.

Long-term growth drivers strengthen India’s position

India’s economic fundamentals are improving, with structural reforms and rising domestic investments underpinning long-term growth.

The country is on track to reduce its dependence on imported oil, contributing to better trade balances.

Moreover, India’s ability to run current account surpluses in the near future could further enhance its resilience against external shocks.

These developments position India as a standout performer among emerging markets, even in a volatile global economic environment.

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