Berkshire Trims Tech, Boosts Undervalued Sectors Amid 26th-Ranked Trading Volume

On August 15, 2025, Berkshire Hathaway (BRK.B) closed with a 0.42% decline, trading at $2.5 billion in volume, ranking 26th in market activity. The conglomerate’s Q2 portfolio adjustments revealed strategic shifts in its investment approach. While the company reported net stock sales, this was largely driven by the reduction of key positions including Apple, Bank of America, and T-Mobile. Notably, Berkshire added six new stocks and increased existing holdings, focusing on undervalued sectors such as healthcare and construction amid broader market optimism. UnitedHealth Group, a recent addition, has faced operational challenges, while homebuilders Lennar and D.R. Horton were highlighted for their low valuation multiples despite sector headwinds. These moves underscore Buffett’s team’s emphasis on capital preservation and opportunistic buying in volatile markets.

Berkshire’s portfolio rebalancing suggests a cautious stance toward high-growth assets, with proceeds from major sales potentially funding new opportunities. The firm’s focus on battered yet fundamentally sound companies aligns with its long-term value investing philosophy. While the S&P 500 and Nasdaq remain near record highs, Buffett’s team appears to prioritize sectors where valuation gaps exist, particularly in industries facing temporary macroeconomic pressures. This strategy reflects a balance between liquidity management and selective accumulation in overlooked markets.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day resulted in a moderate return. The total profit from this strategy, considering the given time frame from 2022 to the present, is $2,550. The maximum drawdown during this period was -15.4%, which occurred on October 27, 2022. This indicates a volatile period for the strategy, but the overall performance shows a positive gain.