Investment Strategy Overview - Warren Buffett's Berkshire Hathaway has made significant investments in various sectors, indicating a strategic shift in focus towards healthcare and housing [2][3][5] - The company has also increased its positions in consumer staples, reflecting a preference for non-cyclical sectors amid economic uncertainties [6][7] Healthcare Investments - Berkshire Hathaway initiated a new position in UnitedHealth Group (UNH), acquiring over 5 million shares valued at approximately $1.6 billion, which led to an 11% increase in UNH's stock price [2] - The investment in UNH aligns with the trend of investing in healthcare-focused ETFs, such as iShares U.S. Healthcare Providers ETF (IHF) [2] Housing Sector Focus - New stakes were established in housing-related companies, including Nucor (6.6 million shares valued at $857 million) and D.R. Horton (1.49 million shares worth $191.5 million) [3][4] - An increased position in Lennar, from 152,000 to 7.23 million shares valued at nearly $799 million, indicates a strong belief in the housing market [4] - The focus on homebuilders suggests confidence in the housing sector, especially with easing mortgage rates [5] Consumer Staples Investments - The consumer staples sector remains a safe investment choice, with companies like Coca-Cola and Kraft Heinz being significant holdings [6][7] - Additional positions in Constellation Brands and Domino's Pizza further enhance Berkshire's exposure to the food and beverage industry [7] Technology and Financial Sector Adjustments - Berkshire Hathaway has reduced its stake in Apple by 69% from 2023 to 2025, now holding around 280 million shares, reflecting a decline of 6.7% [8] - A significant reduction of 56% in Apple shares was noted between October 2023 and June 2024, indicating a strategic shift away from traditional tech investments [9] - Similar reductions were observed in Bank of America, with 26 million shares sold from a total of 630 million [10] Market Performance - Berkshire Hathaway's stock has experienced an 11% decline since the announcement of Buffett's planned CEO succession, although it remains up about 6% year to date [11]

Core Insights - Sales of new U.S. single-family homes increased by 0.6% in June to an annual rate of 627,000 units, falling short of expectations of 650,000 units [1] - Year-over-year, new home sales declined by 6.6% compared to June 2024, indicating ongoing challenges in the housing sector [2] - The inventory of unsold new homes reached 511,000 units, the highest since October 2007, leading to downward pressure on prices [6][7] Sales Performance - June sales rose to a seasonally adjusted annual rate of 627,000 units, a slight increase from May's unchanged figure of 623,000 units [1][2] - The annual decline of 6.6% in new home sales reflects persistent difficulties in the housing market [2] Mortgage Rates Impact - Elevated mortgage rates, with the 30-year fixed-rate mortgage remaining just below 7%, continue to hinder housing market activity [3] - The Federal Reserve's decision to pause rate cuts amid inflation concerns contributes to the high mortgage rates [3][4] Construction and Permits - New housing construction has slowed, with single-family homebuilding in June dropping to an 11-month low and permits for future construction at their lowest in over two years [5] Inventory and Pricing - The unsold inventory of new homes increased to 511,000 units, indicating a supply surplus that would take 9.8 months to deplete at the current sales pace [6] - The median price of a new home fell by 2.9% year-over-year to $401,800 in June, with builders increasingly cutting prices to attract buyers [7] Investment Focus - Homebuilding ETFs such as iShares US Home Construction ETF (ITB) and SPDR S&P Homebuilders ETF (XHB) are recommended for close tracking in light of current market conditions [8]