Photo Source: Motley fool
Back in November, I noticed that the Warren Buffett’s Investment Company, Berkshire Hathawayhave been buying stocks in Domino’s pizza (Nasdaq: DPZ). I have been looking at the preparation of 13f (indicating the trading of a large US account), and this had shown that the stock market was guru was hit 1.27m shares in Pizza Chain of 2024.
It looks like these 1.27m shares in Domino just started Buffett and Berkshire, however. Because the latest Filing of 13f (published within the past few days) shows that in Q4 2024, bought many shares.
Half of stock of thousands of stock
The latest 13f reveals that in Q4, Berkshire Hathaway bought some 1.1m stocks in Domino’s. This increased the size of his position in 86.5% (important).
We do not know exactly what buffetts (or his investment assistants) pay for the shares. However, at the modern price for sharing $ 477, we talk about $ 525m for limited stock.
Now, many investors like to copy the Budfett. And it is easy to see why – in the half-century half of the century issued a large amount from the stock market.
However, I am not sure that the stocks have purchased a list of Ouso’s Domino here is the best. While the company has a very good product and a long-term record, sells right now from 27 times earnings (high) and provides the yield of 1.4% (low).
In my mind, to set the risk / swelling that is not good for those metric. If the income or income receivables will be below the weather for some reason (such as low consumer levels), stock can take a beat.
Does Domino’s UK give more value?
A different story about the listed version of Domino’s pizza (Lese: DOM) however. Currently, this is the price of Price-to-Deal-Realings in the price (P / E) of 14. In those metric, risk / reward setup seems stronger, in my view.
I will show that when two companies share Domino’s Pizza name (one of the most powerful products of the world, are different businesses. While the US list is offering US market exposure (which is a large) international franchise, the UK listed stock provides product exposure to the UK and Irish (very small markets).
Given that the Domino is in the list in the UK focuses on small markets, there is a long-term ability to grow. Almost as much as an additional risk of something wrong (such as consumer changes).
However, I think this is a lot of molding in the value of the measurement. Average AP / EMA 14 looks reasonable to me given this strong solid regory process (cash upsing from £ 289m in 2014 to 2023).
Given the low estimate and a healthy harvest, I believe the Domino’s translation shares are appropriate to look at the portfolio today. Taking a long-term opinion, I think they have the power to bring a firm return.
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