Berkshire 13F Report: Entering the Market Amidst Crisis with UnitedHealth, Continued Selling of Apple and Bank of America
Warren Buffett’s Berkshire Hathaway Submits 13F Report, Revealing Secret Investments
Warren Buffett’s Berkshire Hathaway has submitted its 13F report, revealing previously confidential investments. Berkshire has acquired 5 million shares of UnitedHealth Group, worth approximately $1.6 billion. Following the announcement, UnitedHealth (UNH) shares rose by 9.6% in after-hours trading.
UnitedHealth Shares Drop by 50%, Buffett Enters Amid Crisis
As Buffett invests in UnitedHealth, the healthcare company is facing multiple crises, with its stock price having dropped nearly 50% this year. This aligns with Buffett’s consistent strategy of entering markets during crises.
Like other American health insurance companies, UnitedHealth is grappling with unexpected rises in medical costs. Last year, UnitedHealth executive Brian Thompson was shot and killed in Manhattan. In April of this year, the company’s earnings fell below Wall Street expectations for the first time in over a decade, leading to a significant stock price decline. CEO Andrew Witty resigned and announced plans to replace the CFO.
Berkshire Hathaway Also Purchases Major Steel Producer Nucor, Homebuilder Lennar, and Real Estate Developer DR Horton
Additionally, Berkshire has purchased shares in America’s largest steel producer, Nucor (NUE), residential developer Lennar (LEN), and one of the largest real estate developers in the U.S., DR Horton (DHI).
Continuing to Sell Apple and Bank of America, Exiting T-Mobile
After significantly reducing its stake in Apple last year, Buffett sold an additional 20 million shares in the second quarter. Although the value of Berkshire’s Apple holdings decreased by approximately $9.2 billion during the three months ending June 30, it remains Berkshire’s largest investment by market value.
Berkshire also further reduced its stake in Bank of America, selling 26 million shares by the end of June, bringing its holding percentage down to around 8%. Buffett began scaling back his investment in the bank last year but has not provided any explanation for this move.
Berkshire has completely exited its $1 billion investment in T-Mobile, fully divesting from the telecommunications operator.
Buffett’s investment in the consumer food giant Kraft Heinz Co. has been a persistent headache for the company. Berkshire has recorded a $3.8 billion impairment on its investment, but its stake remained unchanged in the second quarter.
Berkshire Hathaway’s 11th Consecutive Quarter of Net Selling, Cash Reserves Slightly Decline
Berkshire has now net sold stocks for the 11th consecutive quarter, offloading approximately $3 billion in the second quarter. However, cash reserves finally dropped by 1% to $344 billion, still close to historic highs.
Berkshire has also refrained from stock buybacks for four consecutive quarters, suggesting that management believes the stock price is not yet attractive. In its earnings report, Berkshire warned that the tariff policies promoted by President Trump could negatively impact its business operations, especially amid escalating international trade tensions.
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