Berkshire Hathaway Rotates Portfolio Toward Health, Housing and Industry in Latest Filing

Berkshire Hathaway Rotates Portfolio Toward Health, Housing and Industry in Latest Filing

Warren Buffett’s Berkshire Hathaway has signaled a notable shift in its equity strategy, according to the conglomerate’s latest 13F filing released Wednesday after U.S. markets closed. The moves suggest a targeted pivot toward sectors poised to benefit from demographic trends, infrastructure spending, and a potential soft landing for the U.S. economy.

Key New and Expanded Stakes

• UnitedHealth Group: Berkshire re‑entered the health‑insurance space for the first time in over a decade, buying just over 5 million shares worth approximately $1.57 billion. The purchase helped lift UnitedHealth shares more than 10% in the following session.

• Nucor: A new $857 million bet on the U.S. steelmaker, roughly 6.6 million shares at an average near $129.50, driven by expectations of strong demand from manufacturing and construction.

• Lennar & D.R. Horton: Expanded exposure to the U.S. homebuilding sector, lifting Lennar to 7.23 million shares (about $799 million) alongside a $191 million stake in D.R. Horton.

• Additional increases included positions in Allegion, Lamar Advertising, and Heico.

Trimmed and Exited Positions

• Apple: Sold another 20 million shares — a 7% reduction — bringing total cuts since late 2023 to roughly two‑thirds of the original stake.

• Bank of America: Trimmed by about 4% to just over 605 million shares.

• T‑Mobile US: Fully exited its ~$1 billion position.

Overall, Berkshire was a net seller for the 11th straight quarter, unloading roughly $6.9 billion in equities while buying about $3.9 billion.

Reading the Signals

Analysts say the moves reflect Berkshire’s cautious stance on elevated tech valuations and its willingness to redeploy capital into industries with more tangible assets and steady cash flows. Health insurers like UnitedHealth can benefit from aging populations and predictable premium income. Steel and housing bets suggest confidence in U.S. industrial activity and continued household formation despite higher interest rates.

While Berkshire’s portfolio remains concentrated — Apple, American Express, Bank of America, Coca‑Cola, and Chevron still represent about 70% of reported equity holdings — the changes may mark the early stages of a more balanced allocation. “Buffett has always been opportunistic,” said one market strategist quoted in The Wall Street Journal. “This filing shows a willingness to trim where gains are rich and add where fundamentals are still compelling.”

The Buffett Playbook, Evolving

For decades, Berkshire’s filings have been pored over for clues to Buffett’s thinking. This quarter’s mix of profit‑taking in long‑term winners and selective additions to cyclicals suggests the Oracle of Omaha is, as ever, patient — but alert to pockets of value outside his biggest bets.