Warren Buffett Just Sold $4 Billion of Apple Stock. He Used $1.5 Billion of the Money to Buy This Beaten-Down Stock.

Core Viewpoint - Warren Buffett sold approximately $4 billion of Apple stock and invested around $1.5 billion in UnitedHealth Group, indicating a strategic shift in his investment focus [1][2][3]. Group 1: Investment Actions - Buffett sold 20 million shares of Apple, totaling about $4 billion, with an average price of $202 per share during Q2 2025 [2][4]. - The investment in UnitedHealth Group involved purchasing around 5.04 million shares, valued at approximately $1.57 billion, translating to about $311.97 per share [4][3]. - The transaction reflects a broader strategy where Buffett sold shares in Apple in four out of the last six quarters, suggesting a pattern of trimming his position in the tech giant [5]. Group 2: Company Analysis - UnitedHealth Group was identified as a suitable investment due to its strong financials, attractive valuation, and alignment with Buffett's investment strategy [8][11]. - The stock's price-to-earnings ratio is at its lowest in years, contrasting with Apple's relatively high earnings multiple of 35.8 [11]. - UnitedHealth's recent stock decline is attributed to high medical costs, which are expected to be mitigated by higher premiums next year, indicating a low risk of prolonged underperformance [12]. Group 3: Comparative Outlook - There is a debate on whether UnitedHealth Group is a better investment than Apple, with Apple showing better performance historically and having potential growth drivers [9][10]. - Despite the long-term appeal of Apple, UnitedHealth Group is viewed as a more favorable short-term investment due to its current valuation and lower risk profile [13].