1 Standout Warren Buffett Stock to Buy Now With $350

Warren Buffett recently told investors it’s not a great time for Berkshire Hathaway to invest its record cash hoard. The chairman managed the company and its portfolio of equity investments for over 60 years before stepping down at the end of last year.

Before he left, however, Buffett spent the last year and a half building a near-10% stake in one fantastic business. And despite Buffett’s warning, it’s still a great opportunity to buy right now, since the stock is trading below Buffett’s average purchase price. In fact, you can pick up shares for less than $350 each as of this writing.

A great Buffett stock trading at an incredible price

Domino’s Pizza (DPZ 0.36%) caught the eye of Buffett back in 2024. The already-huge pizza chain continues to grow, opening new locations to execute its fortressing strategy. The idea is to saturate markets with locations to promote carryout orders and reduce delivery costs.

For the most part, the strategy has worked, but Domino’s ran into some headwinds last quarter. While the chain added 19 stores in the U.S. and 161 internationally, same-store sales struggled. U.S. comparable sales increased 0.9% in the quarter, while international same-store sales declined 0.4%.

Management pointed to growing macroeconomic uncertainty, which spiked in March amid the Iran war. “Consumer sentiment hit COVID-level lows, and ongoing inflation continued to impact purchase decisions,” CEO Russell Weiner told analysts on the most recent earnings call.

Competitive intensity has increased as competing pizza chains and quick-service restaurants vie for a smaller pool of customers. However, Domino’s is well-positioned to navigate the current environment thanks to its massive scale. It’s adept at using promotions to drive sales, has extensive customer data, and can boost revenue if needed. Management revised its same-store sales outlook to “positive low single digits,” down from 3% after the first-quarter disappointment, but that figure should pick up in the back half of the year.

Investors sold off the stock following the disappointing earnings report, but that’s created an excellent opportunity for long-term investors who expect the shortfall to be a minor blip in Domino’s continued growth. The stock now trades for less than 17 times earnings, which is below its biggest competitors’ multiples despite the better growth it’s producing.

Investors wondering why Greg Abel hasn’t continued buying the company’s shares may be surprised to learn that Berkshire now owns approximately 9.9% of the business. If it exceeds 10% ownership, its reporting requirement increases, and it would have to disclose any purchases or sales within three days.

Abel may want to avoid that, but you don’t have to worry about it. Domino’s Pizza is a great Buffett stock to buy right now, trading below $350.