Berkshire invests $1.6b in UnitedHealth, cuts Apple stake

Berkshire Hathaway disclosed a new US$1.6 billion investment in UnitedHealth Group, according to a recent SEC filing.

The conglomerate also cut its Apple stake by 20 million shares in Q2, bringing its total to 280 million shares.

Berkshire added new positions in DR Horton, Allegion, Lamar ad, and Nucor, and increased its stake in Lennar. It reduced holdings in Bank of America and exited its position in T-Mobile.

The company sold US$3 billion more stocks than it bought between April and June, marking its 11th consecutive quarter as a net seller.

The company ended June with US$344.1 billion in cash and equivalents.

Berkshire, based in Omaha, operates nearly 200 businesses across insurance, railroads, energy, and retail sectors.

Buffett is set to remain chairman after Greg Abel becomes CEO on January 1, 2026.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Berkshire’s unprecedented cash accumulation signals extreme market caution

Berkshire’s investment pattern reveals an unusually defensive stance, with the company maintaining $344.1 billion in cash while being a net seller of stocks for 11 consecutive quarters1.

This represents $174 billion more in stock sales than purchases over that period, suggesting Buffett views current market valuations as too high for his value-oriented approach1.

The company has redirected much of this capital into U.S. Treasury bills yielding approximately 4.3%, which is projected to generate $13.5 billion in interest income for 2025 alone2.

Even while making new investments like UnitedHealth, Berkshire sold $3 billion more stocks than it bought in the second quarter, demonstrating that the overall trend toward cash accumulation continues despite selective opportunities.

This cash position provides Berkshire with significant flexibility to make large acquisitions when attractive opportunities emerge, but the sustained selling pattern suggests those opportunities remain scarce in Buffett’s assessment.