Berkshire Hathaway's Warren Buffett Buys $1.6 Billion UnitedHealth Stake, Sells T-Mobile US

Warren Buffett's Berkshire Hathaway acquired 5 million UnitedHealth shares worth $1.6 billion, increasing its stake in the healthcare provider. The conglomerate also exited its T-Mobile US investment, selling $1 billion in shares. UnitedHealth is facing challenges, including high healthcare costs and executive departures. The news sparked a 9.6% surge in UnitedHealth's stock price after hours. Buffett reduced his Apple holdings by 20 million shares and continued to decrease his stake in Bank of America.

Warren Buffett's Berkshire Hathaway has made significant moves in its equity portfolio during the second quarter. The conglomerate acquired 5 million shares in UnitedHealth Group, worth approximately $1.6 billion, according to a regulatory filing [1]. This purchase comes as UnitedHealth faces numerous challenges, including rising medical costs and executive departures. The disclosure of Berkshire's new stake sent UnitedHealth's stock soaring by up to 9.6% in post-market trading [1].

In addition to the UnitedHealth investment, Berkshire Hathaway sold its $1 billion stake in T-Mobile US Inc. during the same period [1]. The conglomerate also reduced its holdings in Apple Inc. by 20 million shares, bringing its largest equity stake down to 280 million shares [1]. Furthermore, Berkshire continued to decrease its stake in Bank of America Corp., selling 26 million shares and reducing its holding to about 8% at the end of June [1].

These moves come at a time when Buffett is stepping down as Berkshire Hathaway CEO at the end of the year, with Greg Abel taking over the reins [2]. Buffett, however, will remain as chairman of the board. It is unclear whether Buffett, his portfolio managers Todd Combs and Ted Weschler, or future CEO Greg Abel are behind the individual purchases and sales [3].

Berkshire Hathaway also revealed new investments in steel manufacturer Nucor, outdoor advertising company Lamar Advertising, security firm Allegion, and homebuilders Lennar and DR Horton [3]. These investments were kept confidential until Thursday's filing, as the company requested confidentiality treatment from the Securities and Exchange Commission [3].

The purchase of UnitedHealth shares by Berkshire Hathaway is significant given the company's current challenges. UnitedHealth has faced unexpected increases in medical costs, reported earnings below Wall Street estimates in April, and is currently under investigation by the Department of Justice for its Medicare billing practices [1]. Despite these challenges, the insurer's stock price has surged following Berkshire's disclosure, indicating a vote of confidence from the legendary investor [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-14/buffett-buys-1-6-billion-stake-in-unitedhealth-sells-t-mobile
[2] https://www.cnbc.com/2025/08/14/warren-buffetts-berkshire-hathaway-unh.html
[3] https://nypost.com/2025/08/14/business/warren-buffetts-berkshire-acquires-5-million-shares-in-unitedhealth/