So Warren Buffett just dropped his quarterly 13F filing, and let me tell you – it’s like Christmas morning for stock nerds everywhere. The Oracle of Omaha has been sitting on a mountain of cash ($340 billion, to be exact) like a financial dragon, and everyone’s been wondering when he’d finally start spending it.
Well, wonder no more. Uncle Warren just went shopping, and his biggest purchase? UnitedHealth Group. Yeah, the healthcare insurer that’s been getting absolutely hammered this year. While everyone else was running for the exits, Buffett backed up the truck with a cool $1.57 billion investment.
The Market’s Reaction? Pure Gold
The moment this news hit, UnitedHealth stock shot up 14% faster than you can say “Berkshire Hathaway.” Because here’s the thing – when Warren Buffett buys your stock, it’s basically like getting a financial blessing from the investing gods.
UnitedHealth was down 40% for the year and trading at a P/E ratio of just 11. In Buffett-speak, that’s what we call a “screaming buy.” The stock checks all his boxes: it’s a market leader, it’s an insurer (Buffett loves insurance companies), and it’s cheaper than a gas station hot dog.
But Wait, There’s More
UnitedHealth wasn’t Buffett’s only shopping spree item. He also picked up:
- Nucor (steel manufacturer) – $857 million worth
- Lennar (homebuilder) – $780 million
- DR Horton (another homebuilder) – $191 million
- Lamar Advertising – $142 million
- Allegion (cybersecurity) – $112 million
Two homebuilders? Either Buffett’s really bullish on housing, or he’s planning to flip some houses in retirement. (He’s actually retiring at the end of this year, by the way.)
The Apple Exodus Continues
Meanwhile, Buffett keeps dumping Apple stock like it’s a bad Tinder date. He sold another 20 million shares this quarter, bringing his total Apple selloff to two-thirds of his original position. At the end of 2023, Apple made up 49% of Berkshire’s portfolio. Now it’s down to 22%.
He’s also been trimming Bank of America, selling 26 million shares. Apparently, even Warren Buffett has trust issues with banks these days.
The Bottom Line
This is the most new stock positions Berkshire has added since 2020, which suggests the buying spree might just be getting started. When you’ve got $340 billion burning a hole in your pocket and you finally see some deals worth making, you make them.
The lesson here? Sometimes the best opportunities come when everyone else is running scared. UnitedHealth investors who held on through the pain just got a 14% reward for their patience – and a Warren Buffett stamp of approval that’s worth its weight in gold.