Warren Buffett's Final Stock Picks: A Contrarian View from Bank of America

Warren Buffett is retiring as head of Berkshire Hathaway, leaving behind a legacy of value investing and a portfolio of high-quality American brands. Two of his final stock purchases are UnitedHealth Group (UNH) and a new company, but analysts at Bank of America are skeptical about their potential. UnitedHealth is a giant in the US health insurance industry with a market cap of $275 billion, operating through two distinct business divisions: UnitedHealthcare and Optum. Buffett's investment strategy has turned Berkshire Hathaway into a trillion-dollar giant, but it remains to be seen whether his successors will follow in his footsteps.

Warren Buffett, the legendary investor, has announced his retirement as the head of Berkshire Hathaway, leaving behind a legacy of value investing and a portfolio of high-quality American brands. Two of his final stock purchases are UnitedHealth Group (UNH) and a new company, but analysts at Bank of America are skeptical about their potential. UnitedHealth is a giant in the US health insurance industry with a market cap of $275 billion, operating through two distinct business divisions: UnitedHealthcare and Optum.

Buffett's investment strategy has turned Berkshire Hathaway into a trillion-dollar giant. His latest purchases, including a $1.6 billion stake in UnitedHealth Group, signal a vote of confidence in the healthcare sector and the company's long-term prospects. UnitedHealth's stock has been volatile this year, with a series of challenges including soaring medical costs, federal investigations into its Medicare billing practices, and the fallout from the killing of a top executive [1].

Despite the recent struggles, Buffett's investment aligns with his strategy of buying quality businesses at bargain prices. UnitedHealth's stock has a price-earnings ratio of just under 12, making it an attractive proposition for value investors. The company's Optum division, a cash-generating engine with a 22.7% return on equity, and its dominance in Medicare Advantage position it to benefit from demographic tailwinds as the U.S. population ages [2].

The second company in Buffett's final portfolio remains unknown, but it is likely to be another high-quality business with strong fundamentals. Buffett's investment strategy has consistently focused on businesses with durable cash flows and pricing power, and it is expected that his successors will continue to follow this approach.

However, analysts at Bank of America are skeptical about the potential of these investments. They argue that the healthcare sector is facing significant challenges and that UnitedHealth's recent struggles may not be temporary. Additionally, the unknown company's potential remains uncertain without more information.

In conclusion, Warren Buffett's final stock purchases are a testament to his value investing strategy and his confidence in the healthcare sector. However, the success of these investments will depend on the performance of UnitedHealth Group and the unknown company, as well as the ability of his successors to continue his legacy.

References:
[1] https://www.forbes.com/sites/hanktucker/2025/08/15/why-warren-buffett-david-tepper-and-other-top-billionaire-investors-are-piling-into-floundering-unitedhealth-stock/
[2] https://www.ainvest.com/news/warren-buffett-berkshire-hathaway-discloses-1-6-billion-stake-unitedhealth-group-incorporated-2508/