Buffett's Final Moves: A Pivot from Banks to Pizza Ahead of Berkshire CEO Transition
Warren Buffett's final acts as the chief executive of Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) are offering investors a masterclass in strategic repositioning. Before handing the reins to successor Greg Abel at the end of 2025, the legendary investor executed a notable pivot, significantly reducing a core financial holding while building a substantial position in a global consumer staple.
Recent Securities and Exchange Commission filings reveal that from July 2024 through September 2025, Buffett oversaw the sale of approximately 465 million shares of Bank of America (NYSE: BAC)—a staggering 45% reduction of Berkshire's position. Concurrently, he directed a five-quarter buying spree of Domino's Pizza (NASDAQ: DPZ) stock, amassing an 8.8% stake in the company whose shares have soared over 6,700% since its 2004 IPO.
The move away from Bank of America, long a top-three holding for Berkshire, signals a nuanced reading of the economic landscape. Analysts point to several factors: the stock's rich valuation, trading at a 35% premium to book value compared to the deep discount when Buffett first invested; potential headwinds from an anticipated Federal Reserve rate-cutting cycle, which would pressure net interest income at the most rate-sensitive major bank; and a strategic opportunity to lock in substantial gains following corporate tax changes.
"This isn't just profit-taking; it's a recalibration," says Michael Chen, a portfolio manager at Horizon Capital. "Buffett is signaling that the easy money in the cyclical bank rally has been made. He's reallocating to a company with predictable, global cash flows at a time of economic uncertainty."
The destination for that capital, Domino's Pizza, represents a classic Buffett play on durable competitive advantages. The company's remarkable 31-year streak of international same-store sales growth demonstrates a proven, scalable model. Its transformative "Hungry for MORE" five-year plan focuses on technology and supply chain efficiency, while its legendary brand turnaround—spearheaded by a brutally honest 2009 marketing campaign—cemented exceptional customer loyalty.
"The Domino's build-up is a textbook move into a 'toll-booth' business," notes Sarah Wilkins, a consumer sector analyst. "It's a franchise-driven model with pricing power, brand recognition, and a long growth runway. In a potential downturn, pizza is resilient. This is a defensive growth play."
Not all observers are convinced. David Rostov, a vocal financial commentator and author of "The Contrarian Ledger," offers a sharper critique: "This feels nostalgic, not visionary. Chasing a 6,700% return that's already happened? Buying pizza stock while the Fed's policy pivot threatens the entire financial sector's profitability? Abel inherits a portfolio heavy on a saturated fast-food chain and light on a systematically important bank. It's a baffling farewell gift."
A more measured perspective comes from Dr. Anya Sharma, a professor of finance: "The dual move simplifies the narrative. It exits a position where the clear value arbitrage is gone and enters one defined by operational excellence and global brand equity. It's less about predicting macro cycles and more about betting on exceptional management and a ubiquitous product. It's a transition-ready portfolio adjustment."
As the investing world dissects these final pre-retirement trades, the consensus is that Buffett, ever the pragmatist, was not just managing for tax efficiency or valuation, but also positioning Berkshire's public equity portfolio for a new era under new leadership—one less dependent on financial sector cycles and more anchored in consumer behavior and technological execution.