In the second quarter of 2025, Berkshire Hathaway, under the leadership of Warren Buffett, strategically adjusted its investment portfolio, shifting towards healthcare and cyclical sectors while trimming its holdings in certain large-cap technology and banking firms. These disclosures, derived from regulatory filings, offer a glimpse into the firm's investment philosophy, emphasizing value and cash-generating assets.
Berkshire Hathaway's Q2 2025 Portfolio Adjustments: A Comprehensive Overview
During the second quarter of 2025, Berkshire Hathaway engaged in a series of calculated transactions, introducing new positions, expanding existing ones, and divesting from others. The firm initiated a notable position in UnitedHealth (UNH), acquiring approximately 5 million shares valued at around $1.6 billion. This move is interpreted as a potential contrarian play by Buffett, signaling belief in the undervalued health insurer despite sector challenges. Additionally, new investments were made in Nucor (NUE), a steel manufacturer, with about 6.6 million shares disclosed after an earlier confidentiality request, indicating its status as a cyclical cash generator with strong financial discipline.
Berkshire also showed confidence in the U.S. housing market by investing in homebuilders Lennar (LEN), with over 7 million shares, and D.R. Horton (DHI), with about 1.5 million shares, anticipating sustained demand. Smaller, strategic new positions included Lamar Advertising (LAMR) and Allegion (ALLE), expanding exposure to asset-heavy cash flows and building-security hardware.
Existing positions were further bolstered. Berkshire increased its stake in Chevron (CVX), reaffirming energy's role as a core holding. Incremental additions were made to stable cash-return franchises such as Pool Corp (POOL), Constellation Brands (STZ), Heico (HEI), and Domino’s (DPZ). A classic value play was observed with an increased stake in Sirius XM Holdings Inc. (SIRI), whose share price had seen a downturn, offering an attractive trailing 12-month dividend yield.
Conversely, Berkshire reduced its exposure to certain holdings. It sold approximately 20 million shares of Apple (AAPL), valued at about $4 billion, though Apple remains its largest single holding with around 280 million shares. This move is largely seen as risk management and cash generation rather than a repudiation of Apple. The firm also trimmed about 26 million shares of Bank of America (BAC), maintaining it as a core position. Complete exits included T-Mobile (TMUS), while significant reductions were made in Charter (CHTR) (approximately 47% cut), Verisign (VRSN) (nearly 33% reduction), and DaVita (DVA) (a nearly 5% reduction).
These insights are based on Berkshire's Q2 2025 Form 13F filings, WhaleWisdom.com analyses, and contemporaneous reports. It is important to note that 13F filings provide a delayed and partial snapshot, typically submitted up to 45 days after the quarter's end, and do not encompass all of Berkshire's diverse holdings.
The strategic portfolio adjustments by Berkshire Hathaway in Q2 2025 provide valuable lessons for investors, particularly regarding a disciplined approach to market dynamics. While tempting to emulate the moves of seasoned investors like Warren Buffett, individual investors must recognize the inherent limitations of such an approach. The delayed and incomplete nature of 13F filings means that by the time information becomes public, market conditions and stock prices may have already shifted. More crucially, Berkshire operates with unique advantages—massive liquidity, significant insurance float, and the ability to be patient and opportunistic—that most individual investors simply do not possess. Therefore, instead of blindly copying tickers, the true takeaway should be to understand the underlying logic behind Berkshire's decisions. Investors should use these disclosures as a starting point for their own research, focusing on identifying attractively priced companies with strong fundamentals, competitive advantages, and robust cash flows, rather than simply mimicking transactions. This method fosters a deeper understanding of investment principles and aligns decisions with personal financial goals and risk tolerance.