Charles Esther
Berkshire Hathaway, led by Warren Buffett, has made a significant investment in UnitedHealth, acquiring just over five million shares valued at $1.6 billion as of the end of June.
This stake was disclosed in the company’s latest quarterly 13F filing on Thursday.
The purchase is among the last major investment decisions under Buffett’s leadership as he prepares to step down as CEO by year’s end.
Unclear if Buffett Made the Call Personally
It is unknown whether Buffett himself or one of his trusted investment managers, Todd Combs or Ted Weschler, selected UnitedHealth.
Regardless, the move drew attention as investors reacted to the so-called “Buffett Effect,” which often boosts share prices when the legendary investor buys in.
UnitedHealth shares surged over 10% in after-hours trading following the announcement.
UnitedHealth’s Recent Turmoil and Bargain Appeal
UnitedHealth has been dealing with the fallout from the December 2024 shooting death of its CEO, Brian Thompson.
Its share price plunged from about $600 in April to around $310 by June.
Buffett, known for buying undervalued companies, may have considered the drop an attractive buying opportunity.
Apple Stake Reduced Again
Berkshire Hathaway also trimmed its Apple holdings by 7%, bringing the position down to 280 million shares valued at $57 billion at the end of June.
Since early 2024, Berkshire has sold more than two-thirds of its Apple stake, which was worth $174 billion at the time.
Other Portfolio Changes
The conglomerate revealed stakes in homebuilders DR Horton and Lennar, as well as steel producer Nucor, after keeping them confidential in earlier filings.
It also disclosed new investments in Lamar Advertising and Allegion, while increasing positions in Chevron, Constellation Brands, and Domino’s Pizza.
Berkshire exited T-Mobile US and cut back on holdings in Bank of America and Charter.
Berkshire’s Cash Pile Grows
The latest filing coincides with earnings showing Berkshire as a net seller of stocks for the 11th straight quarter.
It sold $6.9 billion worth of shares last quarter while buying $3.9 billion, increasing its cash reserves to $344 billion — more than Coca-Cola’s entire market value.
A Final Chapter in Buffett’s Career
Buffett, turning 95 this month, has struggled in recent years to find large-scale investments at reasonable valuations.
This UnitedHealth purchase may stand out as one of his final signature moves before his retirement.
