Led by the investing guru Buffett, Berkshire Hathaway recently invested about $1.57 billion in the U.S. health insurance giant UnitedHealth Group, becoming the market focus. SEC filings show that as of the end of June, Berkshire held 5.04 million shares of UnitedHealth stock. Following the announcement, the company's stock price surged 12.94% in after-hours trading.
This position was established after UnitedHealth's stock price plummeted 46% this year, as the company has faced multiple pressures in recent months, including rising healthcare costs, a Department of Justice investigation, cyberattacks, and the assassination of top executives. Buffett has previously criticized the high healthcare costs in the U.S. as a 'tapeworm' on economic growth.
In addition to increasing its stake in UnitedHealth, Berkshire also added to its positions in home builders DR Horton and Lennar in the second quarter, and newly purchased safety product supplier Allegion, outdoor advertiser Lamar Advertising, and steel manufacturer Nucor.
However, Berkshire also reduced some of its large holdings, including selling 20 million shares of Apple (reducing its holdings to 280 million shares) and shares of Bank of America, and completely exiting T-Mobile. Despite some new positions, Berkshire net sold about $3 billion in stocks from April to June, raising its cash reserves to $344.1 billion.
Buffett's Berkshire net sold $3 billion in stocks in the second quarter, reducing its holdings in Apple and Bank of America, and invested $1.57 billion in UnitedHealth.
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