Warren Buffett’s investment decisions have long been a bellwether for market trends, and his latest portfolio adjustments, disclosed in the second-quarter 13F filing, underscore a strategic pivot into specific sectors. These moves, particularly significant as he reportedly prepares for retirement, offer insights into the sectors he believes will outperform, even as he pares down long-held positions.
- Substantial new investment in UnitedHealth Group (UNH) within the healthcare sector.
- Significant stake acquired in Nucor (NUE), a leading steel producer, bolstering industrial holdings.
- New positions initiated in major U.S. homebuilders, Lennar (LEN) and DR Horton (DHI).
- Further reduction of Berkshire Hathaway’s substantial stake in Apple.
- Complete divestment of positions in Bank of America and T-Mobile.
Key Portfolio Adjustments
Increased Holdings and New Bullish Positions
The Oracle of Omaha demonstrated a notable bullish stance on the healthcare and industrial sectors. His firm initiated a substantial new position in UnitedHealth Group (UNH), valued at approximately $1.6 billion. This significant entry was swiftly mirrored by market enthusiasm, with UNH shares rising nearly 11% upon the news. Similarly, a nearly $857 million investment was made in Nucor (NUE), a leading steel producer, prompting a 4% rise in its shares.
Buffett further extended his bullish outlook to the U.S. housing market. New stakes were acquired in major homebuilders, including approximately $780 million in Lennar (LEN) and $191.5 million in DR Horton (DHI). Both companies saw their stock prices appreciate by 3% and 2% respectively, signaling strong market validation of these sector bets.
Reduced and Exited Positions
Conversely, Berkshire Hathaway also strategically reduced exposure to some of its previously favored assets. The most prominent adjustment was a further 7% cut in its significant stake in Apple. While still holding approximately 280 million shares valued at around $57 billion, this move follows earlier reductions, indicating a calibrated approach to its largest technology holding. Additionally, the firm divested 26 million shares of Bank of America and completely exited its roughly $1 billion position in T-Mobile.
These disclosed portfolio shifts, unveiled in the Q2 13F filing on August 14, provide a window into the investment philosophy guiding Berkshire Hathaway as it approaches a significant leadership transition. Regardless of whether these specific decisions were directly orchestrated by Mr. Buffett or by his trusted portfolio managers, Todd Combs and Ted Weschler, they unequivocally underscore the enduring market influence of the conglomerate and its strategic foresight in navigating evolving economic landscapes, even as its legendary leader prepares to step back.
Michael Carter holds a BA in Economics from the University of Chicago and is a CFA charterholder. With over a decade of experience at top financial publications, he specializes in equity markets, mergers & acquisitions, and macroeconomic trends, delivering clear, data-driven insights that help readers navigate complex market movements.