Warren Buffett's Acquired Stocks (and the 6 Stocks He's Parting Ways With)
Berkshire Hathaway Makes Strategic Moves in Q2 2025
Berkshire Hathaway, the multinational conglomerate led by Warren Buffett, has made some significant changes to its equity portfolio during the second quarter of 2025.
One of the notable additions is Berkshire's investment in homebuilders. The company added some homebuilders to its portfolio, buying 7 million Class A shares in Lennar (LEN) worth $780 million and 1.5 million shares in D.R. Horton (DHI). Although these holdings account for less than 0.1% of Berkshire's equity portfolio, they mark a strategic move into the homebuilding sector.
Another new position Berkshire Hathaway opened was a sizable stake in UnitedHealth Group (UNH). The investment in UNH reflects Buffett's confidence in the company's structural advantages in healthcare, including strong demand driven by aging demographics and the high return on equity (22.7%) from its Optum segment. Despite challenges like federal investigations, cybersecurity issues, and leadership changes, Buffett saw UNH's durable cash flows, inelastic healthcare demand, and competitive moat as compelling reasons to invest.
Berkshire also boosted its stake in Chevron (CVX) by almost 3%, buying another 3.5 million shares in the integrated energy major. With 122.1 million shares worth $17.5 billion as of June 30, CVX accounts for nearly 7% of the portfolio, making it Berkshire's fifth-largest holding.
However, Berkshire reduced its stake in Bank of America (BAC) by another 4.2%, selling more than 26 million shares. With 605 million shares worth nearly $29 billion as of June 30, BAC is Berkshire's third-largest holding, accounting for more than 11% of the portfolio value.
Berkshire Hathaway, led by Buffett, opened six new positions during the second quarter, including the positions in LEN, DHI, UNH, and CVX.
Despite being a net seller of equities for 11 consecutive quarters, Berkshire's moves illustrate Buffett's preference for companies with durable competitive advantages, attractive valuations, and long-term growth potential despite short-term headwinds.
Here's a summary of the top reasons for Warren Buffett's investment decisions in UnitedHealth Group (UNH) and Nucor (NUE) during Q2 2025:
| Company | Top Reasons for Buffett's Investment Q2 2025 | |------------------|----------------------------------------------------------------------------------| | UnitedHealth (UNH) | Stock down ~46-48%, attractive valuation, strong healthcare structural demand, high ROE in Optum, durable cash flows, healthcare resilience despite regulatory and cybersecurity risks | | Nucor (NUE) | Largest U.S. steel producer, benefited from steel tariffs, stock price recovery, stable earnings prospects, part of broader industrial long-term value play |
These moves exemplify Buffett's "buy the dip" value investing strategy focused on long-term resilience and pricing power amid macroeconomic volatility.
In addition, Berkshire Hathaway purchased 6.6 million shares in steelmaker Nucor (NUE), making it the 25th-largest position in the Berkshire Hathaway equity portfolio. Berkshire also initiated a small stake in outdoor advertising company Lamar Advertising (LAMR). With a 0.3% weighting, LEN is Berkshire's newest significant position in the consumer discretionary sector.
Berkshire Hathaway sold more stock ($7 billion) than it bought ($4 billion) during the second quarter, resulting in a net sale of $3 billion. The company halted stock buybacks since last year due to increasingly stretched valuations.
In summary, Berkshire Hathaway's moves in Q2 2025 demonstrate a strategic approach to investing, with a focus on companies with strong fundamentals and long-term growth potential. Despite being a net seller of equities, Berkshire continues to seek out attractive investment opportunities and maintain a diversified portfolio.
- Warren Buffett, recognizing UNH's structural advantages in healthcare and its Optum segment's high return on equity, decided to invest in whale shares of UnitedHealth Group (UNH).
- In a bid to expand its portfolio, Berkshire Hathaway also made an investment in NUE, purchasing shares in the large steel producer Nucor (NUE), demonstrating its interest in the finance sector and the appeal of businesses with long-term growth potential.
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