Warren Buffett is preparing to step down. He just revealed some of his final stock picks.

Berkshire Hathaway's latest 13F filing reveals a new $1.6 billion stake in UnitedHealth, a significant investment potentially influenced by Warren Buffett's impending retirement and leading to an immediate 'Buffett Effect' on UNH shares. Concurrently, Berkshire further reduced its Apple holding by 7% and exited T-Mobile US, while establishing new positions in homebuilders DR Horton and Lennar, and steel producer Nucor. This portfolio rebalancing contributed to Berkshire being a net seller of stocks for the 11th consecutive quarter, swelling its cash reserves to $344 billion as it seeks compelling investment opportunities.

Analysis

Berkshire Hathaway's Q2 13F filing reveals a significant strategic pivot, highlighted by the initiation of a $1.6 billion stake in UnitedHealth (UNH). This investment appears to be a classic value play, capitalizing on the stock's sharp decline from approximately $600 to $310 during the quarter, likely viewed as an oversold opportunity. The market's immediate positive reaction, with UNH shares rising over 10% in after-hours trading, underscores the continued influence of the "Buffett Effect." In sharp contrast, Berkshire accelerated its divestment from Apple (AAPL), reducing its holding by another 7% to a value of $57 billion, marking a reduction of over two-thirds of the position since the start of 2024. This portfolio rebalancing is part of a broader trend, as Berkshire has been a net seller of stocks for 11 consecutive quarters, divesting a net $3 billion in the last quarter alone. This activity, which included a complete exit from T-Mobile (TMUS) and trims in Bank of America (BAC) and Charter (CHTR), has expanded its cash pile to a record $344 billion. The filing also confirmed new positions in homebuilders D.R. Horton (DHI) and Lennar (LEN) and steel producer Nucor (NUE), indicating a targeted bullish stance on the U.S. housing and industrial sectors.

Key Decisions for Investors

• Investors should consider the new $1.6 billion stake in UnitedHealth a strong bullish signal, potentially indicating a value trough after the stock's recent plunge and an area of conviction for Berkshire's management.
• The methodical and substantial reduction in the Apple holding, coupled with a complete exit from T-Mobile, warrants a re-evaluation of exposure to these names as Berkshire is actively reducing its concentration in large-cap tech and telecom.
• Berkshire's net-seller status for 11 consecutive quarters and its record $344 billion cash position signal a highly cautious macro outlook, while its targeted new buys in housing (DHI, LEN) and industrials (NUE) highlight specific sectors where it still finds compelling value.