Greg Abel Exited a Consumer Brand Warren Buffett Backed for 6 Straight Quarters. Here's Why That Was the Wrong Move.
Berkshire Hathaway, under new CEO Greg Abel, sold all its Domino's Pizza (DPZ) shares this year, despite the company's long-term fundamentals remaining intact. Domino's recent sales have been weak, but it continues to gain market share and expand globally. The stock's valuation has become more attractive, with its P/E ratio dropping to 18, presenting a potential buying opportunity for long-term investors.
How this was made
The 30-second read
Why it matters
The sale removes a high‑profile holder, potentially affecting DPZ's stock perception and valuation.
Market read
DPZ stock may experience short‑term volatility; long‑term fundamentals remain solid, presenting a potential buying opportunity.
What to watch
International expansion pace and low‑capex franchise model may sustain earnings despite short‑term sales weakness.
Background
Berkshire Hathaway, under Greg Abel, has been trimming its equity portfolio, culminating in the complete sale of DPZ shares.
Ticker impact
Berkshire Hathaway sold all of its Domino's Pizza (DPZ) shares in Q1 2026, ending a $1.4 B holding.
Potential modest downside pressure; upside if investors view the sale as a buying chance.
Large shareholder exit signals market perception; however, fundamentals remain strong, supporting a rebound.
Market effects
May influence other quick‑service restaurant stocks as investors reassess valuation gaps.
U.S. consumer discretionary sector could see slight bearish pressure.
Limited to U.S. markets; no immediate global ripple.
Counterpoint
Berkshire's exit could be over‑reaction; DPZ's franchise model and market share gains support a rally.
Key entities
- institutional investorBerkshire Hathaway
Largest shareholder exiting DPZ.
- companyDomino's Pizza
Subject of the divestiture.
