Few investors in history have been as successful as Warren Buffett. So when his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) adds a new stock to its equity portfolio, everyone wants to know why.

Berkshire Hathaway's portfolio of stocks is valued at over $300 billion, according to CNBC. And in the second quarter, the conglomerate bought shares of Ulta Beauty (NASDAQ: ULTA) for the first time. By June 30, it held over 690,000 shares of the cosmetics retailer, a position worth about $250 million as of this writing.

Berkshire hasn't explained why it invested in Ulta, but having followed Buffett over the years, I have some ideas on why he's buying up shares of this company.

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Source Fool.com