Warren Buffet’s firm Berkshire Hathaway holds $266 million worth of Ulta Beauty shares|Mike Mozart|CC BY 2.0
Billionaire investor Warren Buffet’s firm Berkshire Hathaway revealed it recently bought shares of Ulta Beauty and holds $266 million worth of them—causing Ulta’s stock to rise by 11% the next day.
Berkshire’s investment came after the beauty retailer’s stock dropped significantly this year due to slowing demand and increased competition from Sephora and Amazon.
Analysts see the move as a sign of confidence in Ulta’s long-term potential. The company has grown its revenue consistently over the years, maintains strong profit margins, and effectively manages its capital.
Berkshire has a history of successfully investing in consumer-focused businesses like Coca-Cola and Kraft Heinz. Ulta’s stock remains relatively cheap compared to its historical average and other retailers in the S&P 500.