Berkshire Adds $1.6 Billion Stake in UnitedHealth Amid Share Slide

Berkshire Hathaway has drawn significant market attention following the release of its latest 13F filings, revealing a $1.6 billion investment in UnitedHealth Group. The move sent UnitedHealth’s shares surging 7% on Thursday, despite the stock having lost nearly half its value in 2025 amid a range of challenges, including a federal investigation into Medicare billing practices and the recent resignation of its CEO [1]. This large-scale acquisition, which included more than 5 million shares, now positions UnitedHealth as the 18th largest stock in Berkshire’s $300 billion portfolio, placing it just behind Amazon and Constellation Brands [2]. The purchase occurred during the second quarter but was only publicly disclosed in recent days.

The timing of the trade has raised eyebrows, particularly given UnitedHealth’s recent struggles. The company withdrew its earnings guidance for the remainder of the year in May and issued a disappointing 2025 outlook in July, triggering a wave of selling pressure. The fact that Berkshire chose to buy into the company during such a difficult period is consistent with Warren Buffett’s long-standing investment strategy—capitalizing on market panic to acquire undervalued assets [3]. While Buffett himself is still listed as the company’s public face, it is widely believed that his deputies, Todd Combs and Ted Weschler, executed this trade. This is similar to how Buffett attributed the Amazon purchase to his team in 2019 [4].

In addition to UnitedHealth, Berkshire also expanded its positions in Nucor, Lamar Advertising, and Allegion. Nucor shares jumped 8% in after-hours trading following the announcement, while Lennar and DR Horton—both of which Berkshire had previously sold—were added back into the portfolio, pushing their shares up 3% each [5]. Meanwhile, the firm reduced its stake in Apple by 7% and trimmed exposure to Bank of America, signaling a shift in focus away from the technology and financial sectors. Apple remains the largest single stock in Berkshire’s portfolio, followed by American Express, Bank of America, Coca-Cola, and Chevron [6].

The market reaction to these trades came amid broader volatility driven by the latest Producer Price Index (PPI) data, which showed a 0.9% increase in July—well above the 0.2% forecast. The inflation surprise led to sharp intraday declines in major indices, with the S&P 500 and Nasdaq both falling 0.4% at their lows and the Dow dropping over 200 points. However, late-day buying activity helped the S&P 500 to close with a modest 0.03% gain, marking its third consecutive record close [7].

Berkshire’s strategic moves highlight a broader shift in its investment approach. The firm appears to be seeking more stable, less disruptive sectors by increasing exposure to healthcare and industrial companies, while reducing reliance on high-growth tech and financial names. This strategy aligns with Buffett’s historical emphasis on long-term value and defensive positioning [8]. Analysts have noted that Berkshire’s recent actions suggest a continued evolution of its portfolio, with an eye toward diversification and resilience amid economic uncertainty [9].

The market is now speculating about the identity of Berkshire’s so-called “mystery stock,” which is believed to be an industrial firm with strong competitive advantages. With Buffett’s influence continuing to shape investor sentiment, the market remains closely watching for further clues as to how the conglomerate plans to navigate the current economic landscape [10].

[1] https://www.investing.com/news/stock-market-news/berkshire-hathaway-acquires-5-million-shares-in-unitedhealth-4193789

[2] https://www.investors.com/news/warren-buffett-berkshire-hathaway-13f-secret-stock-pick-apple-bac/

[3] https://www.msn.com/en-us/money/savingandinvesting/berkshire-hathaway-s-secret-stock-buffett-s-48-billion-mystery-bet/ar-AA1Kx7pZ?ocid=finance-verthp-feeds

[4] https://www.registercitizen.com/business/article/warren-buffett-s-company-reveals-new-investments-20818194.php

[5] https://invezz.com/news/2025/08/13/berkshire-hathaways-secret-stock-bet-nears-possible-reveal/

[7] https://www.msn.com/en-us/money/topstocks/berkshire-hathaway-s-brkb-new-mystery-stock-is-about-to-be-revealed/ar-AA1KoRIy