What's Behind Warren Buffett's Latest Stock Moves? Three Holdings Worth Watching in Q3

The Investment Signals From Berkshire Hathaway’s 13F Filing

When Berkshire Hathaway files its quarterly 13F disclosure, the investment world pays attention. This November, the holding company led by legendary investor Warren Buffett revealed its third-quarter trading activity—and notably, this marks the second-to-last filing before his planned year-end retirement. What makes this filing particularly interesting is that despite Buffett’s well-documented cash buildup over recent years (a cautious signal about broader market valuations), Berkshire still found three compelling opportunities worth deploying capital into.

The strategy appears deliberate: rather than sitting entirely on the sidelines, Buffett’s team identified specific sectors and companies where intrinsic value remains attractive. These three stocks offer insights into where the legendary investor sees potential in today’s market.

1. Alphabet: The New Tech Bet in Berkshire’s Portfolio

Alphabet (NASDAQ: GOOGL, GOOG) represents a fascinating shift for Berkshire Hathaway—it’s an entirely new position established during Q3. The parent company behind Google operates across multiple high-growth verticals: internet search dominance, cloud infrastructure, artificial intelligence development, and autonomous vehicles through Waymo.

Warren Buffett’s tech investments have historically been selective, making this $5.1 billion initial stake a noteworthy signal. The timing coincides with Alphabet’s accelerating cloud business and recent breakthroughs in AI capabilities, including the Gemini 3 language model and expanding autonomous ride-hailing operations.

From a valuation perspective, Alphabet trades at approximately 27 times 2025 earnings estimates. While this isn’t a deep discount, Wall Street analysts project 15-16% annualized earnings growth over the next three to five years, suggesting the market hasn’t fully priced in the company’s structural advantages in search, cloud, and emerging AI applications.

Given that this marks a fresh Berkshire entry point, investors should monitor whether Buffett’s team continues adding to the position—a behavior that would signal even stronger conviction in Alphabet’s trajectory.

2. Domino’s Pizza: Consistent Capital Deployment

Domino’s Pizza (NASDAQ: DPZ) showcases Warren Buffett’s appetite for quality businesses with proven models. Berkshire initiated its investment in Domino’s during Q3 of last year and has systematically added shares every quarter since. The Q3 purchase alone expanded Berkshire’s stake by over 13%.

What attracts long-term investors like Buffett to Domino’s? The franchise-based operating structure is elegant in its economics. With 21,700+ locations worldwide, the company captures royalty streams and franchise fees while franchisees bear the capital costs of building and running stores. This generates recurring, predictable revenue with superior margins compared to company-operated restaurant models.

The company has maintained an impressive dividend track record, raising payments annually for 12 consecutive years. Currently trading at 23 times 2025 earnings, Domino’s faces growth expectations of 10-11% annually over the coming years—reasonable expectations for a mature, well-managed business with pricing power and international expansion runway.

Buffett’s consistent quarterly additions suggest he views current valuations as reasonable given Domino’s cash generation and capital return potential.

3. Chubb: Insurance Focus Reflects Core Competency

Insurance investments represent one of Warren Buffett’s strongest suit areas, a legacy that traces back to Berkshire’s acquisition of GEICO decades ago. In Q3, Berkshire added substantially to its position in Chubb (NYSE: CB), raising its stake by nearly 16%—the most significant quarterly increase since early last year.

Chubb operates as a global insurance heavyweight spanning property, casualty, accident, supplemental health, and life coverage. The company’s 100+ year operating history and consistent dividend increases—31 consecutive years of raises—reflect institutional quality and financial stability that appeal to Buffett’s investment philosophy.

With a market value of $9.1 billion in Berkshire’s portfolio, Chubb ranks among the holding company’s largest positions. The stock trades slightly above its decade-long average price-to-book ratio, yet Buffett’s aggressive accumulation suggests he sees durable competitive advantages and pricing power in the insurance sector that justify current levels.

Notably, Berkshire continues trimming other holdings to raise cash reserves while simultaneously adding to Chubb. This selective buying pattern—reducing overall equity exposure while deepening specific high-conviction positions—sends a clear message about which businesses Buffett views as genuinely undervalued relative to long-term prospects.

What These Moves Reveal About Market Opportunity

The three stocks chosen by Warren Buffett and his team reveal a nuanced view: markets may appear broadly stretched, yet specific high-quality franchises with sustainable competitive advantages still offer reasonable risk-reward profiles. From a growth tech leader (Alphabet) to a recurring-revenue business model (Domino’s) to a financial fortress (Chubb), Berkshire’s Q3 activity demonstrates how disciplined capital allocation remains possible even in uncertain environments.

For investors seeking to understand Buffett’s current thinking, these holdings warrant close attention.