Here's the 1 Stock Warren Buffett Keeps Buying Despite Market Volatility

Berkshire Hathaway has been a consistent buyer of Domino’s Pizza since Q3 2024 even as Buffett has otherwise built cash amid market volatility, reflecting conviction in Domino’s consumer brand moat and recurring-franchise revenue model. Domino’s operates roughly 21,750 stores through 9M 2025 with rapid store adds and a long international runway, plus share gains in the U.S. (26% in 2019 to 30% last year) driven by technology and automation and 31 consecutive years of international same-store-sales growth. The company combines high ROIC and capital efficiency (sales ~+18% and EPS ~+38% over five years) with analyst-forecasted EPS growth of 10–11% over the next 3–5 years, a 1.7% yield with 12 years of dividend increases, and a P/E of 23.6 near its decade low. In short, Domino’s presents a durable, cash-generative growth profile at a reasonable valuation that aligns with value-oriented, dividend-seeking institutional mandates and offers continued expansion optionality.

Analysis

Berkshire Hathaway has been a consistent buyer of Domino's Pizza (DPZ) since the third quarter of 2024, purchasing shares each quarter while Warren Buffett otherwise reduced holdings and increased Berkshire's cash position; this selective accumulation signals conviction in DPZ amid elevated market volatility. The company's scale and franchise model are central to that conviction, with 21,750 stores through nine months of 2025, up from 19,880 in 2022, and recurring fee-and-royalty revenue supporting cash generation.

Domino's has expanded U.S. market share from 26% in 2019 to 30% last year and reports 31 consecutive years of international same-store-sales growth, with technology (mobile app and restaurant automation) cited as a driver. Management has increased store counts annually (20,591 in 2023; 21,366 in 2024), highlighting a long physical and international growth runway relative to peers (McDonald's ~44,000 stores).

Financially, sales rose roughly 18% over five years while EPS grew over 38%, analysts project 10–11% EPS CAGR for the next 3–5 years, and the stock yields 1.7% with 12 consecutive years of dividend increases; a P/E of 23.6 is noted as near a decade low. The combination of high ROIC, durable unit-level economics and a reasonable valuation explains Buffett's interest, but investors should monitor execution risk, consumer cyclicality and franchise dynamics as the expansion continues.

Key Decisions for Investors

• Consider accumulating or modestly overweighting DPZ on material pullbacks given strong unit growth (21,750 stores through 9M25), durable international SSS streak and a P/E near its decade low, but size exposure to match portfolio risk limits
• Monitor quarterly U.S. market-share trends, same-store-sales, unit openings and margin/ROIC metrics as primary triggers to add or trim exposure
• If concerned about consumer cyclicality or execution risk, maintain a smaller core position or hedge tail risk with options rather than exiting, since Berkshire's steady purchases indicate long-term conviction