Oracle of Omaha’s Final Act Shows He’s Still Finding Value Where Others See Risk
Warren Buffett’s back in the bargain aisle, and this run might be his last. Berkshire Hathaway ($BRK.A) snatched up a $1.6B stake in UnitedHealth Group during Q2, marking one of the CEO’s largest healthcare bets as he prepares to step down at year’s end. The move sent shares soaring 12% on Friday, demonstrating the legendary “Buffett Effect” that transforms beaten-down stocks into investor darlings overnight.
- The Oracle of Omaha also revealed positions in homebuilders Lennar and D.R. Horton, plus steelmaker Nucor, while continuing to trim his Apple holdings.
- The conglomerate now sits on a record $344B cash pile — exceeding Coca-Cola’s entire market value — after selling a net $3B in stocks for the 11th consecutive quarter.
Legacy positioning: Hudson Value Partners’ Christopher Davis praised the UNH investment as “a good example of Berkshire and Buffett’s willingness to take the long view,” pointing to the company’s strong earnings record before its recent slump. However, skeptics remain, with analyst Larry McDonald warning, “Buffett has been buying the puke-athon.” Even so, Buffett is once again leaning on his classic value investing formula — buying quality companies when they’re temporarily out of favor, a strategy that has paid off for him many times before.
