Key Takeaways
Powered by lumidawealth.com
- Berkshire sold 20 million Apple shares in Q2; Apple remains its largest holding at ~30x NTM EPS, down ~7% YTD.
- New position in UnitedHealth; shares popped after-hours despite operational and regulatory overhangs.
- Added/initiated: Allegion, Lamar Advertising, Nucor, D.R. Horton, Lennar A; modestly increased Chevron, Domino’s, Pool, Constellation Brands.
- Reduced: Bank of America; fully exited T-Mobile. Maintained Kraft Heinz but booked a $3.8B after-tax write-down after leaving the board and amid potential spinoff exploration.
- Net seller in Q2: $6.92B sold vs. $3.9B bought; cash and equivalents rose to $344B as buybacks paused during market rally.
- Leadership transition: Buffett hands CEO role to Greg Abel at year-end; remains chairman. Berkshire B shares +5.7% YTD vs S&P 500 +10%.
What’s Happening?
Berkshire Hathaway’s 13F filing shows it trimmed its Apple position by 20 million shares in Q2, continuing a measured reduction that began last year, while initiating a position in UnitedHealth. The firm added to select industrials, energy, and consumer names and pared financials exposure, notably Bank of America, and exited T-Mobile. Berkshire was a net seller of equities and allowed cash to build to an all-time high. The filing reflects activity through June and arrives alongside news that Buffett will transition the CEO role to Greg Abel at year-end.
Why Does It Matter?
The moves signal a more defensive, valuation-sensitive stance amid elevated mega-cap multiples and macro uncertainty. Trimming Apple at ~30x NTM EPS and rotating into cash and select cyclicals/hard-asset names (Nucor, energy) aligns with a late-cycle playbook. The UnitedHealth buy suggests Berkshire sees asymmetric recovery potential despite regulatory and operational noise. Elevated cash and a pause in buybacks imply Berkshire views opportunity cost of waiting as low relative to current market levels, preserving dry powder for future dislocations.
What’s Next?
Watch for: 1) continued Apple trimming vs. redeployment pace into health care, energy, and housing-related cyclicals; 2) whether record cash is deployed via bolt-on acquisitions or accelerated buybacks if valuations compress; 3) UnitedHealth execution and regulatory developments; 4) any follow-through on Kraft Heinz strategic actions; and 5) portfolio continuity as Greg Abel assumes the CEO role. Remember 13F lag—Q3 activity may already differ from the snapshot.
