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Bank of America Reiterates Buy on Apple, Services Driving Growth
ByAinvest
Wednesday, Aug 20, 2025 7:03 pm ET1min read
Bank of America reiterates "Buy" on Apple (AAPL), citing Services as a key growth driver. The firm expects Services to continue driving year-over-year gross profit dollar growth, making it a stable investment. Analysts have a consensus "Buy" rating on the stock, with an average price target of $245 and a Street-high target of $275.
Title: Warren Buffett's Q2 2025 Portfolio Shakeup: UnitedHealth Group and Apple AdjustmentsWarren Buffett's Berkshire Hathaway has made significant changes to its portfolio in the second quarter of 2025, reflecting a strategic response to economic uncertainty and a focus on long-term growth. The company invested $1.57 billion in UnitedHealth Group (UNH), marking its first stake in the insurer since 2010 [1]. This investment underscores Buffett's confidence in the healthcare sector's long-term potential, despite recent challenges faced by UnitedHealth Group, such as soaring medical costs and federal investigations.
Additionally, Berkshire Hathaway trimmed its Apple (AAPL) position by 20 million shares, reduced its Bank of America (BAC) stake, and exited T-Mobile (TMUS). These moves suggest a shift in Buffett's focus towards more defensive sectors with inelastic demand and predictable cash flows. The company also increased its holdings in Chevron (CVX), Lennar (LEN), Constellation Brands (STZ), and Domino's Pizza (DPZ).
These changes have led to a more concentrated portfolio, with the top five holdings now making up 75% of Berkshire Hathaway's $258 billion equity portfolio [3]. The investment in UnitedHealth Group and the reduction in Apple shares align with Buffett's preference for buying quality businesses at bargain prices and maintaining a highly concentrated portfolio.
The reduction in Apple shares and the exit from T-Mobile suggest a shift in Buffett's focus towards more defensive sectors with inelastic demand and predictable cash flows. This strategy is in line with Buffett's belief in the importance of durable cash flows and pricing power over speculative tech [3].
As Warren Buffett prepares for retirement at the end of the year, these moves could set the tone for Berkshire Hathaway's future investment approach. The company's top five holdings now include Apple, American Express (AXP), Bank of America, Coca-Cola (KO), and Chevron.
References:
[1] https://www.aol.com/warren-buffetts-berkshire-hathaway-discloses-205107064.html
[2] https://www.ainvest.com/news/warren-buffett-berkshire-hathaway-discloses-1-6-billion-stake-unitedhealth-group-incorporated-2508/
[3] https://www.kiplinger.com/investing/stocks/warren-buffett-stocks-berkshire-hathaway-portfolio
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