Buffett backs UnitedHealth stake

Berkshire Hathaway builds a UnitedHealth stake as Buffett nears retirement, signaling a patient, value focused approach in a changing market.

Buffett Signals Final Berkshire Moves With UnitedHealth Bet

Berkshire Hathaway disclosed in its latest 13F filing that it bought just over 5 million UnitedHealth Group shares, a stake valued at about 1.6 billion dollars at the end of June. The move appears in Berkshire's quarterly portfolio update and comes as Warren Buffett, who turns 95 later this month, plans to step back from day to day management. It is unclear whether Buffett himself or his investment chiefs Todd Combs and Ted Weschler made the decision. UnitedHealth stock jumped more than 10 percent after hours on the news, underscoring market interest in Buffett style bets. The stock had fallen from about 600 dollars in mid April to around 310 dollars by late June amid leadership turmoil following the December 2024 death of CEO Brian Thompson.

Berkshire also trimmed its Apple stake by 7 percent to about 280 million shares, while adding new positions in Lamar Advertising and Allegion and taking stakes in Chevron, Constellation Brands, and Domino's Pizza. It exited T Mobile US and reduced holdings in Bank of America and Charter Communications. The 13F shows Berkshire as a net stock seller for the eleventh straight quarter, even as the cash pile grew to about 344 billion dollars, a buffer large enough to dwarf Coca Cola. Buffett has long favored patient value bets, and this cash cushion suggests Berkshire will stay selective as opportunities arise.

Buffett's late career moves reveal a preference for durable franchises with predictable earnings and strong balance sheets. The UnitedHealth bet fits a pattern of seeking pricing power and resilience in sectors that can weather volatility. Yet the change also tests Berkshire's ability to act decisively without Buffett's daily oversight, especially as retirement nears. The market reacts to Buffett moves not only for the numbers but for the signaling value his name carries across risk appetite and valuations.

Over time Berkshire's portfolio shifts may signal a broad strategy that favors quality and cash generation over rapid growth. The company is reducing its heft in a technology centric portfolio while expanding in advertising and manufacturing, suggesting a focus on steady cash flows. The challenge will be to translate Buffett's philosophy into a post Buffett era while keeping discipline and avoiding overconcentration in any single bet.

Highlights

The arc of Berkshire's capital choices will quietly test the legacy of a long run in value investing.