Berkshire Hathaway Sells $3.6 Billion in Apple Stock, Invests in UnitedHealth

In a recent filing with the Securities and Exchange Commission, Berkshire Hathaway disclosed a significant reduction in its Apple holdings, selling approximately 20 million shares valued at about $3.6 billion. This is the first time in over a year that the company has further trimmed its stake in Apple, a company that remains its largest investment despite a 7% share price decline this year. At the same time, Berkshire made a surprising move by purchasing shares in UnitedHealth Group, a health insurer currently navigating a series of challenges, including funding cuts, the death of a senior executive, and other business controversies. Following the news of Berkshire's investment, UnitedHealth's shares saw a jump of over 9% in after-hours trading.

UnitedHealth's share price has fallen by more than half over the past year, but some investors, like portfolio manager Darren Pollock, remain optimistic about the company's prospects for recovery under the leadership of its returning CEO, Stephen Hemsley.

Berkshire's filing also revealed new investments in a number of construction and manufacturing companies, including Allegion, Lamar Advertising, Nucor, D.R. Horton, and Lennar Class A shares. The firm maintained its position in Kraft Heinz, despite recording a substantial after-tax loss and removing its board representatives.

Other portfolio adjustments included a reduced stake in Bank of America, a full exit from T-Mobile, and modest increases in holdings of companies such as Chevron, Domino’s Pizza, Pool Corp, and Constellation Brands.

Overall, Berkshire was a net seller in the second quarter, selling $6.92 billion in stocks while buying only $3.9 billion. The company also chose not to repurchase any of its own shares, even during a record market run. This cautious approach has resulted in a record cash reserve of $344 billion, reflecting a patient and defensive strategy.

While Berkshire's B shares have underperformed the S&P 500 this year, gaining 5.7% compared to the index's 10% increase, the company is preparing for a major leadership transition. Warren Buffett is expected to hand over the CEO role to Greg Abel later this year, though he will remain chairman. These quarterly 13F filings, while delayed by up to 45 days, are closely watched by analysts and investors for insights into the strategies of firms like Berkshire Hathaway.