Buffett bets on swimming pools and Domino's Pizza, but his liquidity is an enigma

How is Warren Buffett doing? And why are his latest transactions causing discussion? The latest documents filed show that Berkshire Hathaway bought shares in Domino's Pizza and Pool Corp. during the third quarter of this year, while heavily reducing some long-standing investments.

Buffett, founder of the Omaha, Nebraska-based conglomerate, acquired about 1.3 million shares of the pizza retailer, giving Berkshire a 3.6% stake worth about $550 million. While the deal on Pool Corp. (a wholesale distributor of swimming pool equipment) is worth about $153 million for a 1 per cent stake.

Meanwhile, Buffett's company sold most of its shares in cosmetics retailer Ulta Beauty, a stake it had originally acquired in the previous quarter. A move that sent Ulta Beauty's stock plummeting. While the stock of Domino's and Pool gained over 7% immediately after the news was published.

The 94-year-old investment guru, whose moves are widely followed and imitated by his devoted followers, has reduced some of his major holdings in recent months, cutting his investments in Apple by around 25% and those in Bank of America (now below the 10% mark).

Disposals of Apple shares reduced Berkshire's allocation to the technology sector by about 3%. Overall, Berkshire recorded $34.6 billion in net share sales in the three months to September. Together with the absence of share buybacks in the quarter, the sales brought Berkshire's cash to the record $325.2 billion.