Warren Buffett's Berkshire Hathaway revealed its Q2 2025 13F filing, detailing significant new investments in UnitedHealth Group and steel manufacturer Nucor. The conglomerate also increased its stakes in homebuilders Lennar and D.R. Horton, while reducing positions in Apple and Bank of America and fully exiting T-Mobile. These strategic shifts indicate a focused bet on value-oriented sectors and critical infrastructure.

Market Overview: Berkshire Hathaway's Q2 2025 Portfolio Shifts

U.S. equities saw notable shifts in sentiment following the disclosure of Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) second-quarter 2025 13F regulatory filing on Thursday, August 14, 2025. The filing revealed substantial new equity positions and portfolio adjustments, signaling a strategic recalibration towards specific sectors.

New Investments Detail: Healthcare and Industrial Focus

Berkshire Hathaway established significant new stakes in UnitedHealth Group (UNH) and Nucor (NUE), alongside increased holdings in several homebuilders. As of June 30, 2025, Berkshire Hathaway held approximately 5 million shares of UnitedHealth Group, valued at about $1.6 billion. This investment in the healthcare giant was reportedly accumulated since the fourth quarter of 2024, with Berkshire Hathaway requesting confidential treatment from regulators during the acquisition phase to mitigate immediate market impact.

In the industrial sector, Berkshire acquired 6.61 million shares of steelmaker Nucor, a stake valued at approximately $856.8 million. Further reinforcing a bet on the American economy, the conglomerate also increased its exposure to the housing market. Its stake in Lennar (LEN) grew significantly, with approximately 7 million new shares purchased, bringing the total value to around $780 million for Class A shares and an additional $19 million for Class B shares. Berkshire also reinvested in D.R. Horton (DHI), acquiring about 1.49 million shares valued at approximately $191.5 million. Smaller new positions were also disclosed in Allegion (ALLE) and Lamar Advertising (LAMR), with an additional 3 million shares added to its Chevron (CVX) position.

Conversely, Berkshire Hathaway made several notable divestments. The firm sold 20 million shares of its Apple (AAPL) holdings and divested 26 million shares of Bank of America (BAC). The quarter also saw a complete exit from its T-Mobile (TMUS) stake, valued at $1 billion, marking its sole full divestment during the period.

Strategic Rationale and Market Reaction

The market exhibited an immediate positive reaction to the disclosures, a phenomenon often referred to as the "Buffett effect." Shares of UnitedHealth Group surged more than 10% in extended trading, while Nucor's stock price increased after hours, jumping 8% to $155.25. Both Lennar and D.R. Horton also experienced price jumps following the news.

Berkshire Hathaway's investment strategy appears to lean towards what some analysts might term "contrarian value." The substantial investment in UnitedHealth Group, despite ongoing regulatory investigations, a CEO resignation, and a reduced earnings outlook, suggests a long-term conviction in the fundamental resilience of the healthcare sector. UnitedHealth Group was trading at a Price-to-Earnings (P/E) ratio just under 12, near decade-long lows, indicating a potential undervaluation from Berkshire's perspective. This aligns with Buffett's stated philosophy:

"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Similarly, the investments in Nucor and homebuilders like Lennar and D.R. Horton (which trade at P/E multiples of 10.8 and 12.4, respectively) suggest a strategic bet on the industrial and construction sectors. These moves are interpreted as confidence in domestic manufacturing and infrastructure spending, particularly as mortgage rates have shown signs of easing, drifting lower towards 6.5–6.6%, a 10-month low.

Broader Sector Implications: Housing, Data Centers, and Industry

Berkshire's increased holdings in homebuilders come at a time when the "rate-lock" effect continues to limit resale listings, pushing buyers towards new construction. Despite regional variations, national home prices demonstrated resilience, rising approximately 2.9% year-over-year in Q2 2025. This indicates Berkshire Hathaway may be making a long-term bet that current housing headwinds are temporary, anticipating continued demand fueled by a persistent national housing shortage.

Nucor, as the largest and most diversified steel company in the U.S., producing approximately 25% of the raw metal, is strategically positioned to benefit from increased infrastructure spending. The company's use of electric arc furnaces (EAFs), which are more energy- and cost-efficient, provides production flexibility. Financially, Nucor has demonstrated disciplined operations, consistent net profits, strong free cash flow, and an impressive record of increasing its shareholder dividend for 52 consecutive years. Its P/E ratio was attractively positioned at 10.99 (or 10.54 adjusted for the last twelve months as of Q4 2023), with a dividend yield of 1.09% and recent dividend growth of 5.88%.

A significant development for Nucor is its establishment of Nucor Data Systems (NDS) in 2024 through the acquisition of Southwest Data Products. NDS specializes in providing construction infrastructure for data centers, a sector experiencing explosive growth driven by Artificial Intelligence (AI) demand. U.S. data center construction spending surged at a 46% compound annual growth rate from May 2022 to May 2025, reaching a seasonally adjusted annual rate of $37.4 billion. This strategic pivot positions Nucor as a key infrastructure provider for the digital economy, leveraging its industrial expertise to support high-tech advancements.

Analyst Perspectives and Future Outlook

These portfolio adjustments reflect a strategic rebalancing, moving capital away from some technology and financial stocks, as evidenced by the reductions in Apple and Bank of America and the full divestment from T-Mobile. This could indicate a cautious stance on certain segments perceived as overvalued or a deliberate reallocation towards more traditional, value-oriented industries with strong underlying fundamentals.

Some of these investments, particularly those below the typical $1 billion threshold for Warren Buffett's direct involvement, may have been initiated by Berkshire Hathaway's investment lieutenants, Todd Combs or Ted Weschler, who are known for identifying opportunities in sectors beyond Buffett's traditional focus. The timing of these moves also coincides with Warren Buffett's impending step down as CEO at the end of 2025, to be succeeded by Greg Abel, though Buffett will remain as chairman. This transition raises questions about the future direction of Berkshire's investment strategy.

Looking ahead, the market will closely monitor the performance of UnitedHealth Group as it navigates regulatory challenges, as well as the continued growth in the construction and data center sectors, where Nucor and the homebuilders are now significant Berkshire Hathaway plays. These investments underscore a persistent focus on tangible assets and long-term growth potential within key segments of the American economy.