Warren Buffett has been raising cash for years. Berkshire Hathaway’s cash pile has grown to historic levels, which many interpret as Buffett signaling that the market is broadly overvalued.
But he’s still buying selectively. And when Buffett buys, people pay attention.
Berkshire’s latest 13F filing for Q3 just came out, and while it won’t be the last one with Buffett at the helm (he’s retiring at year-end), it shows he’s still finding value in specific names even as he trims elsewhere.
Three stocks stand out from the filing: a brand-new position in a tech giant, continued buying in a pizza franchise, and aggressive accumulation of an insurance company. Here’s what makes each one interesting.
Alphabet (GOOGL) – Brand New Position Worth $5.1 Billion
Current price: ~$300 | Valuation: 27x 2025 earnings
Berkshire added exactly one new position to its portfolio in Q3, and it’s a big one. Alphabet, Google’s parent company, now represents a $5.1 billion stake in Berkshire’s portfolio. That’s just outside the top 10 holdings, which for a portfolio as large as Berkshire’s is significant.
This is interesting for a few reasons. First, Buffett has historically avoided tech stocks, though that’s changed in recent years with positions like Apple. Second, the size of the initial position suggests real conviction. This wasn’t a toe-in-the-water buy.
Alphabet’s recent earnings showed strength across the business. Google Cloud is thriving, AI developments like Gemini 3 continue to hit the news, and Waymo’s autonomous ride-hailing service keeps expanding. The company is diversified across search, cloud computing, AI, and self-driving technology.
At 27 times forward earnings with analysts expecting 15-16% annualized earnings growth over the next three to five years, the valuation is reasonable for a company of Alphabet’s quality and scale. The question now is whether Berkshire continues adding to this position or if this was a one-time allocation.
Domino’s Pizza (DPZ) – Buffett Keeps Buying Every Quarter
Current price: ~$407 | Valuation: 23x 2025 earnings | Dividend yield: 1.65%
Domino’s is the stock Buffett can’t stop buying. Berkshire first invested in Q3 of last year and has added shares every single quarter since. This quarter, they boosted their stake by more than 13%.
The continued buying tells you something. Buffett sees value here, and he’s backing that view with consistent action.
Domino’s operates over 21,700 stores worldwide using a franchise model. That structure is capital-efficient because franchisees bear the costs of building and operating restaurants while Domino’s collects fees and royalties. It’s a smaller but more profitable and steadier revenue stream than company-owned locations.
The company has paid and raised its dividend for 12 consecutive years. At 23 times 2025 earnings estimates with expected earnings growth of 10-11% annually over the next three to five years, the valuation is attractive for a steady, cash-generating business.
Buffett’s discipline and long-term mindset have made him legendary, and his continued appetite for Domino’s suggests he believes the stock is still undervalued even after the repeated buying.
Chubb (CB) – Buffett’s Increasing His Bet on Insurance
Current price: ~$298 | Market cap: $117 billion | Dividend yield: 1.26%
Insurance is Buffett’s specialty. Berkshire’s relationship with GEICO goes back decades, and the company understands insurance economics better than almost anyone.
Chubb has been a major focus for Berkshire over the past two years. The latest filing shows Berkshire raised its stake by nearly 16% in Q3, the largest increase since early last year. The position is now worth $9.1 billion and ranks among Berkshire’s larger holdings.
This buying is happening while Berkshire trims other positions to raise cash, which makes the Chubb accumulation even more notable. When Buffett is selling most things but aggressively buying one specific stock, you pay attention.
Chubb is over 100 years old and operates worldwide offering property and casualty, accident, supplemental health, and life insurance. The company has paid and increased its dividend for 31 consecutive years, reflecting strong management and execution.
The stock trades slightly above its average price-to-book ratio over the past decade, but Buffett clearly sees value. Given his expertise in insurance and his willingness to keep buying while raising cash elsewhere, Chubb appears to be one of the few stocks he believes is genuinely undervalued right now.
What This Tells Us
Buffett’s been raising cash for years, signaling caution about overall market valuations. But these three buys show he’s still finding opportunities when the price is right.
Alphabet is the new position that suggests Buffett sees value in quality tech at reasonable valuations. Domino’s is the steady franchise play he keeps adding to quarter after quarter. Chubb is the insurance bet where he’s showing the most aggression, raising his stake significantly while trimming elsewhere.
None of these are speculative growth plays. They’re established, profitable companies trading at reasonable valuations with strong fundamentals. That’s classic Buffett.
If you follow the philosophy that you should pay attention to what great investors are buying (not just what they say), these three stocks are worth a closer look. When one of the best investors of all time is deploying capital into specific names while sitting on record cash levels, it suggests he’s found something the market is undervaluing.