Warren Buffett Is Selling Apple and Bank of America Stock and Piling Into an Embattled Healthcare Stock Down 46% This Year

Core Insights - Berkshire Hathaway's second-quarter 13F filing reveals significant stock holdings and trading activities, highlighting the company's investment strategies as Warren Buffett prepares to step down as CEO [2][3] Group 1: Stock Holdings and Transactions - Berkshire Hathaway sold 7% of its stake in Apple and 4% of its stake in Bank of America during the second quarter, continuing a trend of reducing its positions in these companies by 30% and 41% respectively over the past year [4] - The company initiated a $1.57 billion position in UnitedHealth Group, a healthcare insurer whose stock has declined approximately 46% this year, indicating a contrarian investment approach [10][15] Group 2: Market Conditions and Strategic Moves - Despite a bull market lasting over 2.5 years, Berkshire has maintained a conservative investment strategy, holding substantial cash reserves and selling more stocks than it purchases [6] - The company appears to be preparing for a leadership transition, with Greg Abel set to take over as CEO, which may influence its cautious investment stance [7] Group 3: UnitedHealth Group Analysis - UnitedHealth has faced challenges, including rising medical insurance costs and a downward revision of its earnings outlook to $16 adjusted earnings per share, significantly below Wall Street's expectations [11] - The company is under investigation by the U.S. Department of Justice regarding its Medicare Advantage program, although it maintains confidence in its practices [13] - Despite current struggles, UnitedHealth is projected to achieve double-digit revenue growth by 2025, supported by a solid balance sheet and a dividend yield of approximately 3.25% [12][14][15]