Featured News Headlines
- 1 Nucor Stock – Warren Buffett Makes Bold New Bets: Steel Giant Nucor and Healthcare Titan UnitedHealth Join Berkshire’s Portfolio
- 2 Steel Industry Returns to Buffett’s Radar
- 3 Healthcare Heavyweight Joins the Mix
- 4 Housing Market Double Down
- 5 The Mystery of Confidential Holdings
- 6 Continued Reduction of Core Holdings
- 7 Aerospace Bet Continues Paying Off
Nucor Stock – Warren Buffett Makes Bold New Bets: Steel Giant Nucor and Healthcare Titan UnitedHealth Join Berkshire’s Portfolio
Nucor Stock – The legendary investor Warren Buffett has once again surprised Wall Street with his latest portfolio adjustments, as revealed in Berkshire Hathaway’s quarterly Form 13-F filing. The Oracle of Omaha has established significant new positions in Nucor Corporation and UnitedHealth Group, while continuing his methodical reduction of tech giant Apple and banking heavyweight Bank of America.
Steel Industry Returns to Buffett’s Radar
Berkshire Hathaway’s entry into Nucor (NUE) marks a fascinating return to the steel sector for Buffett, who previously faced challenges in this cyclical industry. The filing reveals a substantial 6.6 million share position valued at approximately $857 million as of June 30th.
The timing appears shrewd, with Buffett’s average purchase price sitting at $129.54 per share, significantly below current trading levels. Following the disclosure, Nucor stock surged over 6% in early Friday trading, jumping to $153.34 and clearing a technical buy point of $147.15.
Market analysts suggest this steel play could be part of Buffett’s broader infrastructure thesis, particularly given the ongoing focus on American manufacturing and construction projects.
Healthcare Heavyweight Joins the Mix
Perhaps more intriguing is Berkshire’s massive $1.57 billion investment in UnitedHealth Group (UNH), acquiring just over 5 million shares. This healthcare giant has faced recent headwinds, with shares trading at $271.49 on Thursday, representing a 13% decline from Buffett’s average purchase price of $311.97.
However, the Buffett effect proved immediate and powerful. UnitedHealth shares rocketed 11% higher to $301.50 in early Friday trading following the disclosure. The move gained additional momentum as other prominent hedge funds, including David Tepper’s Appaloosa and Stephen Mandel’s Lone Pine Capital, also revealed new or expanded positions in the healthcare behemoth.
Housing Market Double Down
Buffett’s confidence in the American housing market became crystal clear through his real estate-focused acquisitions. The filing unveiled a $191.49 million stake in homebuilder D.R. Horton (DHI), comprising 1.49 million shares.
Even more dramatically, Berkshire dramatically expanded its Lennar (LEN) position, growing from a modest 152,572 shares in March to a whopping 7.23 million shares by June 30th. This transformation created a $798.7 million position in the homebuilder.
Both housing stocks responded enthusiastically, with D.R. Horton climbing 3.1% and Lennar surging 4.6% in early Friday action. The moves come as mortgage rates have begun declining following disappointing July employment data.
The Mystery of Confidential Holdings
Adding intrigue to the filing, Berkshire’s previous 13-F report indicated confidential treatment requests for undisclosed holdings. While the current filing doesn’t specify which positions were kept secret, Nucor emerges as a prime candidate given its substantial size and recent performance.
Historically, Buffett has employed this strategy when building major positions to avoid market speculation. Previous examples include his $7 billion Chubb investment, initially kept confidential before disclosure in May 2024.
Continued Reduction of Core Holdings
Despite new additions, Buffett maintained his pattern of reducing major positions. Apple shares dropped to 280 million from 300 million in the previous quarter, representing a two-thirds reduction since Q3 2023. Similarly, Bank of America holdings decreased by 4% to 605.27 million shares.
This selling spree extends Berkshire’s status as a net seller of equities for 11 consecutive quarters, highlighting Buffett’s cautious stance amid current market valuations.
Aerospace Bet Continues Paying Off
Buffett expanded his successful Heico (HEI) position by 11%, adding 132,524 shares to the aerospace supplier stake. The company, recently featured as an IBD Stock of the Day, maintains an impressive 98 IBD Composite Rating and continues delivering strong performance for Berkshire’s portfolio.
The latest portfolio revelations underscore Buffett’s ability to identify value across diverse sectors while maintaining his disciplined approach to capital allocation in an increasingly complex market environment.
