In the second quarter of 2025, Warren Buffett took daring steps in adjusting the portfolio of Berkshire Hathaway, selling longtime favourites Apple and Bank of America, together with placing a contrarian wager in a failing healthcare giant.
According to the company in the last regulatory filing, it had bought approximately 5 million shares of UnitedHealth Group, which is worth about 1.6 billion as of June 30. The transition took place when the company had to go through tough times, with the Justice Department investigation into the Medicare billing, the escalation in healthcare costs, a hack, and the recent death of an executive.
All this has caused a plunge of almost 46 per cent in its stock so far this year, which is why the investment by Berkshire is a vivid demonstration of faith. The announcement of the acquisition instantly buoyed shares of UnitedHealth, which rose by 8-to-10 in after-hours trading, what are commonly referred to as the Buffett Bounce.
Meanwhile, Berkshire reduced its stake in Apple by 17.4 million shares, or nearly 7 per cent of its stake, worth nearly $4 billion. The sale might make Apple the only single equity position in Berkshire, but the company still holds more than 280 million shares, estimated to be worth over 57 billion dollars. Berkshire also cut its stake in the Bank of America, selling around 26 million shares to leave it with a substantial holding of more than 605 million shares, worth some $29 billion.
The move highlights a larger-scale rebalancing of the portfolio. Berkshire was still a net seller of equities, the 11th consecutive quarter with net sales of about $7 billion, a purchase of about $4 billion, meaning a cash mountain of over 340 billion. Outside health care, the company increased its exposure to homebuilders Lennar and D.R. Horton, steel producer Nucor, advertising company Lamar, security products maker Allegion and increased stakes in Chevron, Constellation Brands and Domino Pizza. It sold out its T-Mobile holdings completely as well.
The latest actions of Buffett are characteristic of his trademark approach of investing in distressed firms at the time of crisis by leaning into undervalued firms. The Oracle of Omaha has exercised a balancing act of reducing outsized bets in Apple and Bank of America as he enters a healthcare stock in a big way – right after it had been kicked by bearish investors – as part of a longer-term investment approach that emphasises fundamentals over market noise.
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