Right before the market took a big hit, Warren Buffett made a smart move. In the last few months of 2024, Berkshire Hathaway sold all its shares in two major S&P 500 index funds: Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF Trust (SPY).

Then, in April, former President Donald Trump announced new tariffs called “Liberation Day” tariffs. Wall Street was caught off guard. In just five trading days, the S&P 500 dropped 12 percent, falling 19 percent below its February high.

Even though Buffett sold his index funds, it does not mean he is giving up on America. These investments were a very small part of his portfolio, and Buffett has always said he believes in the long-term strength of the U.S. economy. His main goal is to beat the market, not just match it. Selling these funds was part of that strategy.

Buffett also said in a recent interview that most of the money he manages will always stay in the United States.

Ditching Funds for Pizza

Instead of index funds, Buffett is betting more on Domino’s Pizza (NASDAQ: DPZ). Domino’s has been doing very well. Over the last ten years, the stock has grown by 375 percent. That is better than many popular tech stocks.

Domino’s is not just about pizza. They are using new technology like artificial intelligence to guess what customers will order and make pizzas faster. They also let people order pizza from parks, beaches, and other outdoor spots. Domino’s recently partnered with Uber Eats and DoorDash to reach even more customers.

Even though Domino’s missed some financial targets last quarter, it still grew its sales and crushed its main competitors like Papa John’s and Pizza Hut. Analysts believe Domino’s earnings will grow by about 8 percent every year for the next two years.

Buffett is showing that even when the market is rough, there are smart places to invest if you look carefully.