Buffett's Top Picks: UNH, Nucor, D.R. Horton, Lennar, Lamar, Coca-Cola, Constellation Brands, Domino's Pizza and Apple

Warren Buffett's Berkshire Hathaway revealed a new position in UnitedHealth Group, holding over 5 million shares valued at $1.6 billion. Other notable picks include Nucor, D.R. Horton, Lennar, and Lamar Advertising. Buffett's focus on homebuilders and consumer staples suggests confidence in housing and the non-cyclical nature of the staples sector. Investors can mirror Buffett's strategy with ETFs such as iShares U.S. Healthcare Providers ETF (IHF), iShares US Home Construction ETF (ITB), and iShares U.S. Consumer Staples ETF (IYK).

Warren Buffett's Berkshire Hathaway revealed significant portfolio adjustments in the second quarter of 2025, reflecting the legendary investor's strategic focus on defensive value stocks and sectors poised for long-term growth. The company's equity portfolio, valued at approximately $300 billion, saw notable changes, including new positions in UnitedHealth Group, Nucor, D.R. Horton, Lennar, and Lamar Advertising, while trimming stakes in Apple and Bank of America [1].

One of the most significant moves was Berkshire's purchase of over 5 million shares in UnitedHealth Group, valued at approximately $1.6 billion. This investment puts the health-care firm as the 18th-biggest position in the Berkshire portfolio, behind Amazon and Constellation Brands. UnitedHealth Group has faced challenges this year, with shares declining by nearly 50% through Thursday's close before Berkshire's filing. The insurer is currently under investigation by the Justice Department for its Medicare billing practices and has pulled its annual earnings outlook [2].

In addition to UnitedHealth Group, Berkshire also took small stakes in steel manufacturer Nucor, outdoor advertising company Lamar Advertising, and security firm Allegion. The conglomerate also got back into homebuilders Lennar and DR Horton, signaling confidence in the housing sector amid inflation and supply challenges. These moves reflect Berkshire's renewed exposure to the industrial and manufacturing sectors, as well as its continued interest in the real estate sector [3].

Buffett's focus on homebuilders and consumer staples suggests confidence in housing and the non-cyclical nature of the staples sector. The housing sector, driven by a severe shortage of homes and Sunbelt demand, has seen strong performance. D.R. Horton's stock surged 24% in Q2 2025, while Lennar's rose 19%, outperforming the S&P 500's 8.5% gain. Buffett's return to the sector, after selling his entire D.R. Horton stake in Q4 2023, signals a conviction that the housing market's structural issues will eventually resolve, creating durable demand for new construction [3].

Investors can mirror Buffett's strategy with ETFs such as iShares U.S. Healthcare Providers ETF (IHF), iShares US Home Construction ETF (ITB), and iShares U.S. Consumer Staples ETF (IYK). These ETFs provide exposure to the sectors where Buffett has shown confidence, offering a diversified approach to long-term value creation.

References:
[1] https://www.cnbc.com/2025/08/14/warren-buffetts-berkshire-hathaway-unh.html
[2] https://www.ainvest.com/news/warren-buffett-berkshire-hathaway-trims-apple-bank-america-stakes-invests-struggling-healthcare-stock-unitedhealth-group-2508/
[3] https://www.ainvest.com/news/warren-buffett-strategic-shift-investments-nucer-lennar-dr-horton-reveal-economy-2508/