Here’s a thrilling update straight from the investing playbook of the world’s most legendary investor, Warren Buffett. Despite trade tensions and shaky innovation in artificial intelligence, Buffett is standing firm with Apple stock. Even more surprising? He’s buying more of a restaurant stock that’s grown 4,500% in the last 15 years, Domino’s Pizza.

Apple: A Giant Buffett Still Believes In

Warren Buffett’s company, Berkshire Hathaway, continued to hold Apple stock in the first quarter of 2025. The tech giant posted decent results in Q2 (which ended in March):

  • Revenue rose 5% to $95 billion
  • GAAP earnings increased 8% to $1.65 per diluted share
  • Strong growth in services balanced out weak iPhone sales (less than 2% growth)

Apple’s strategy is focused on staying a leader in the smartphone world, but that’s only half the game. The company has over 2.35 billion active devices in use and is trying to monetize them through services like:

  • App Store fees
  • Advertising
  • iCloud storage
  • Apple Pay
  • Subscriptions such as Apple TV+

While Apple is doing a good job growing its services business, investors are concerned about its slow progress in artificial intelligence. Its AI platform, Apple Intelligence, launched in October, hasn’t excited users much. A new version of Siri, expected to be a big upgrade, has been delayed. Right now, Apple Intelligence is free, but many experts believe Apple will charge for advanced features in the future. However, that future looks far off. And with smartphone sales expected to grow just 4% annually through 2029, Apple’s own growth might stay limited in the short term.

To make things more uncertain, trade policies are shifting. Most iPhones are made in China, and while the Trump administration may lower tariffs on Chinese goods, the president has also threatened Apple with a 25% tariff if it moves iPhone production to India instead of the United States.

It’s unclear if Trump will actually impose those tariffs but it creates doubt. Plus, Apple stock trades at 31 times earnings, while profits only grew 8% last quarter. That’s a rich valuation for a company facing this much uncertainty. Bottom line: If you’re not already an investor, this may not be the best time to jump in. But if you already hold Apple shares and believe in its long-term potential, you could follow Buffett’s lead and stay invested as long as you’re okay with the risks.

Domino’s Pizza: The Surprising Buy From Berkshire

Now here’s a twist: Buffett’s team didn’t just hold their ground in tech. They also bought more of a restaurant stock that’s been on fire over the last 15 years: Domino’s Pizza, which has seen an eye-popping 4,500% return.

In the first quarter, Domino’s delivered mixed results:

  • Revenue grew 2.5% to $1.1 billion, slightly below estimates
  • GAAP net income jumped 21% to $4.33 per diluted share, beating the $4.07 expected by analysts

Despite missing revenue expectations, Domino’s gained market share in both U.S. and international stores, according to CEO Russell Weiner.

So why does Buffett like this stock?

It’s about scale and execution. Domino’s is the biggest pizza chain in the world, and it’s constantly improving operations with technology and smart strategies. Here’s how:

  • Using AI and robotics in dough production to lower costs and maintain quality
  • Leveraging AI to inspect orders and gather feedback from social media
  • Known for strong marketing and menu innovation

In 2023, Domino’s launched its bold new growth plan: “Hungry for More”. The targets for 2028 include:

  • 7% annual sales growth (excluding foreign currency)
  • 8% annual operating income growth
  • 1,100 new stores opened each year

But the first quarter didn’t go as planned:

  • Sales (excluding currency) rose less than 5%
  • Operating income was flat
  • The company actually closed a net total of eight stores

Looking ahead, Wall Street thinks Domino’s earnings will grow around 6% annually through 2026. But with the stock trading at 27 times earnings, it’s not exactly cheap. The stock may look expensive now, but Buffett’s team likely saw better value in Q1 when prices were lower. For now, investors might want to wait. But one thing’s clear: Domino’s long-term potential is still on Buffett’s radar.

Final Word

Warren Buffett is playing it cool with Apple, holding steady despite uncertainty around AI and tariffs. At the same time, he’s doubling down on a food industry legend, Domino’s Pizza, even as growth slows. These bold moves show Buffett’s faith in long-term value over short-term noise. Whether you’re an investor or just following the market, one thing’s for sure: when Buffett makes a move, the world pays attention.