Berkshire: Strategic New Positions Signal Sector Confidence

Key Takeaway: Warren Buffett’s Berkshire Hathaway has released its quarterly Form 13-F filing for the period ending June 30, 2025, providing valuable insights into the legendary investor’s latest moves. The filing reveals strategic shifts in Buffett’s portfolio, including new positions in healthcare and steel, significant investments in housing, and continued reduction of his Apple holdings. With a total portfolio value of $257.5 billion across 114 holdings, these moves come at a time when markets are showing mixed signals.

Berkshire Hathaway’s most notable new investments include substantial positions in UnitedHealth Group (UNH) worth $1.57 billion and Nucor Corporation (NUE) valued at $857 million. The UnitedHealth investment represents over 5 million shares at an average purchase price of $311.97, though the stock closed at $271.49 on Thursday before surging 11% to $301.50 in early Friday trading following the disclosure. This healthcare bet comes as the sector faces ongoing regulatory pressures but also demonstrates Buffett’s confidence in the long-term prospects of managed care.

The Nucor investment, comprising 6.6 million shares, signals Buffett’s bullish outlook on American steel production and infrastructure. Nucor shares jumped 6.2% to $153.34 in pre-market trading, breaking past a technical buy point of $147.15. This investment aligns with potential infrastructure spending and domestic manufacturing trends, suggesting Buffett sees value in companies positioned to benefit from reshoring initiatives.

Both investments may represent larger positions than disclosed, as Berkshire’s May filing indicated the company had requested confidential treatment for certain holdings. This strategy, previously used for investments in Chubb, Chevron, and Verizon, allows Buffett to accumulate shares without immediately alerting the market and potentially driving up prices.

Housing Market Bet Reflects Economic Optimism

Berkshire’s foray into homebuilding stocks represents a significant shift in strategy, with new positions in D.R. Horton (DHI) worth $191.49 million and a dramatically expanded stake in Lennar (LEN) worth $798.7 million. The Lennar position grew from just 152,572 shares in March to 7.23 million shares by June 30, representing one of the quarter’s most aggressive moves. Both stocks surged in early Friday trading, with DHI up 3.1% and LEN gaining 4.6%.

This housing sector investment comes as mortgage rates have fallen following weaker-than-expected employment data, potentially reinvigorating homebuying demand. Buffett’s timing appears strategic, as both companies are well-positioned to benefit from any housing market recovery. The scale of these investments suggests Buffett sees significant value in residential construction, possibly betting on demographic trends, housing shortages, and the potential for continued economic growth.

The housing bet also demonstrates Buffett’s willingness to make substantial sector allocations when he identifies compelling opportunities. Unlike his typical preference for established consumer brands and financial services, these homebuilder investments show his adaptability in finding value across different market segments.

Continued Portfolio Reshaping Amid Market Uncertainty

Berkshire continued trimming its largest positions, reducing Apple holdings from 300 million to 280 million shares and selling approximately 4% of its Bank of America stake, which now stands at 605.27 million shares. These sales mark the 11th consecutive quarter of net equity selling for Buffett, reflecting either valuation concerns or a strategic cash-building exercise. Despite the reduction, Apple remains Berkshire’s largest holding, though the position is down more than two-thirds from its Q3 2023 peak.

The continued selling pattern coincides with current market conditions showing mixed signals. As of August 14, 2025, the Dow Jones Industrial Average closed at 44,911.26 (down 0.02%), the S&P 500 at 6,468.54 (up 0.03%), and the NASDAQ at 21,710.67 (down 0.01%). The VIX volatility index sits at 14.56, suggesting relatively low market anxiety despite ongoing geopolitical and economic uncertainties.

Buffett’s cash-building strategy may position Berkshire for future opportunities during market downturns. With interest rates reflected in Treasury yields ranging from 3.713% (2-year) to 4.888% (30-year) as of August 15, 2025, maintaining substantial cash reserves provides both defensive positioning and the flexibility to make large acquisitions when attractive opportunities emerge. This approach has historically served Berkshire well during periods of market stress, allowing the company to deploy capital when others are forced to sell.

Key Lessons for Retail Investors

Retail investors can extract several valuable lessons from Buffett’s latest moves. First, the importance of patient capital allocation is evident in his willingness to request confidential treatment while building positions, demonstrating that successful investing often requires time and discretion. Second, his diversification into new sectors like steel and housing shows the value of remaining open to opportunities outside one’s traditional comfort zone, provided the investment thesis is sound.

Perhaps most importantly, Buffett’s continued selling of appreciated positions while building cash reserves illustrates the discipline required for long-term wealth creation. Rather than chasing momentum or market trends, his approach emphasizes maintaining liquidity for future opportunities and taking profits when valuations become stretched.

For individual investors, this suggests the importance of having a clear investment strategy and the patience to execute it regardless of short-term market movements.

The scale and conviction behind Buffett’s new positions also highlight the importance of position sizing relative to conviction level. When Berkshire identifies compelling opportunities, it makes meaningful allocations rather than token investments, a principle retail investors can apply by concentrating their best ideas rather than over-diversifying into mediocre opportunities.

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This article was written by Shane Neagle, editor in chief of The Tokenist.