Berkshire Hathaway's Q2 2025 13F Filing: A Masterclass in Value Investing for the Long-Term Investor

Warren Buffett's latest 13F filing for Q2 2025 is a goldmine of insights for value investors. The document, submitted on August 14, 2025, reveals a portfolio that's both bold and disciplined, with a total value of $257.5 billion. While the top five holdings—Apple (AAPL), American Express (AXP), Bank of America (BAC), Coca-Cola (KO), and Chevron (CVX)—still dominate 70% of the portfolio, the moves Buffett made in the quarter signal a strategic pivot toward sectors with long-term durability and cash flow. Let's break down what this means for investors and why Buffett's playbook remains a blueprint for compounding wealth.

The Buffett Playbook: Quality Over Hype

Buffett's Q2 moves are a masterclass in value investing. He trimmed his Apple stake by 6.67% (selling 20 million shares) and reduced Bank of America by 4.17% (26.3 million shares). These aren't signs of doubt—they're calculated rebalancing plays. Apple and Bank of America are still top-tier companies, but Buffett is managing concentration risk. The top ten holdings now account for 87% of the portfolio, a level of concentration that demands careful risk management.

The real fireworks, however, are in the new additions. Berkshire's $1.6 billion stake in UnitedHealth Group (UNH) is a standout. UnitedHealth had been battered by regulatory scrutiny and leadership changes, but Buffett saw an opportunity to buy a healthcare giant with recurring revenue and pricing power at a discount. This move aligns with his philosophy: buy what you know, when it's cheap.

The Real Economy Playbook: Housing, Steel, and Infrastructure

Buffett's team also doubled down on the real economy. They increased stakes in D.R. Horton (DHI), Lennar (LEN), and Nucor (NUE)—homebuilders and a steelmaker. These aren't speculative bets; they're plays on long-term structural trends. The U.S. faces a housing shortage, and aging infrastructure demands massive reinvestment. Buffett's move into Nucor, a steelmaker, is particularly telling. Steel is the backbone of construction, and with interest rates stabilizing, this sector could see a renaissance.

Energy and Consumer Staples: Buffett's Anchors

The energy sector remains a key overweight in the portfolio, with Chevron and Occidental Petroleum (OXY) holding strong. Buffett's 28.1% stake in Occidental is a bet on the energy transition—oil and gas will remain critical for decades, but the company is also investing in carbon capture and renewable energy. Meanwhile, Coca-Cola and American Express continue to anchor the portfolio, offering stable dividends and brand power.

The Cash Buffer: Buffett's Secret Weapon

Berkshire's cash reserves now sit at a record $344 billion. Buffett has been clear: he's not buying overvalued stocks. The S&P 500's P/E ratio is stretched, and Buffett prefers to wait for “margin of safety” opportunities. This cash pile isn't just a safety net—it's a weapon. When the market corrects, Berkshire will be ready to pounce on undervalued franchises or even acquire entire companies.

What This Means for Value Investors

Buffett's Q2 moves offer a roadmap for long-term investors:
1. Buy Quality in Weakness: UnitedHealth's purchase shows the power of buying durable businesses when sentiment is pessimistic.
2. Diversify Within Strength: Even in winning sectors like tech and finance, manage concentration risk.
3. Prioritize Cash Flow: The real economy sectors Buffett is targeting—housing, steel, healthcare—are all cash-flow generators with low volatility.
4. Stay Patient: Buffett's cash hoard is a reminder that waiting for the right opportunity is often better than settling for a mediocre one.

The Bottom Line

Buffett's Q2 2025 filing isn't just a portfolio update—it's a strategic statement. By trimming overexposed positions, adding to high-conviction sectors, and maintaining a cash buffer, he's positioning Berkshire to thrive in a world of uncertain valuations. For value investors, the message is clear: focus on quality, manage risk, and stay patient. The next big opportunity could be just around the corner, and Buffett's playbook shows how to be ready for it.

In a market obsessed with short-term noise, Buffett's approach is a reminder that compounding wealth takes time, discipline, and a willingness to go against the crowd. As the Q3 13F filing approaches, one thing is certain: Buffett's moves will continue to offer a masterclass in value investing for those willing to listen.