Warren Buffett was a net seller of stocks for the 11th consecutive quarter in the second quarter of 2025. However, the legendary investor wasn't only selling stocks in Q2 for Berkshire Hathaway's portfolio.
Buffett just invested $3.9 billion in 12 stocks, including three brand-new positions. Several of his purchases look like good picks, but one stands out as the best of the bunch.
Image source: The Motley Fool.
Buffett's Q2 dandy dozen
Half of Buffett's buys in Q2 involved adding to Berkshire Hathaway's existing positions. For example, the "Oracle of Omaha" increased Berkshire's stake in Chevron (CVX -0.71%) by nearly 3%. He (or perhaps one of Berkshire's two other investment managers) boosted the conglomerate's position in Lennar Class B (LEN.B) shares by roughly 18.4%.
Buffett and his team also continued scooping up more shares of several stocks they've bought in recent quarters. Stocks in this group are Constellation Brands (STZ -1.14%), Domino's Pizza, Heico (HEI -0.08%), and Pool Corp.
We learned the identity of Buffett's "mystery stock" that he began buying in the first quarter of 2025 in Berkshire's recent 13-F filing. It turned out to be multiple stocks instead of a single stock: D.R. Horton (DHI -0.22%), Lennar Class A (LEN -0.39%), and Nucor (NUE -0.49%).
Berkshire also initiated new positions in three stocks. The conglomerate now has stakes in security solutions provider Allegion (ALLE 0.01%), outdoor advertising company Lamar Advertising (LAMR -1.50%), and healthcare giant UnitedHealth Group (UNH 1.57%).
How they compare
Heico ranks as the biggest winner in 2025 so far among Buffett's Q2 purchases. But the aerospace and electronics stock is running neck and neck with Allegion this year, with Nucor not too far behind.
Buffett isn't the purist value investor that he once was, but stock valuations still matter to him. Homebuilders Lennar (both share classes) and D.R. Horton claim the lowest valuations, based on forward price-to-earnings ratios.
However, Buffett always factors earnings-growth prospects into his analysis of a stock's valuation. One popular metric that does this, too, is the price-to-earnings-to-growth ratio (PEG). UnitedHealth Group's PEG ratio of 1.24 is the most attractive by far among the 12 stocks Buffett bought in Q2.
If we're only focusing on near-term growth prospects, Nucor claims the prize -- at least, according to Wall Street analysts. The consensus projection for the steelmaker's earnings growth next year is nearly 32.5%. Chevron comes in second place, with earnings growth projected to be around 24.4%.
Speaking of Wall Street, analysts' favorite pick among the stocks Buffett bought in Q2 appears to be Constellation Brands. The average 12-month price target for the beverage alcohol company reflects an upside potential of around 22%.
Of the 25 analysts surveyed by LSEG in August, 16 rated Constellation Brands as a buy or strong buy. The other nine analysts recommended holding the stock.
What about dividends? Lamar Advertising boasts a forward dividend yield of 5.09%, the highest of the 12 stocks bought by Buffett last quarter. Chevron takes the runner-up spot, with its forward dividend yield of 4.39%.
The best of the bunch
I think the best of the bunch among Buffett's 12 stocks purchased in Q2 for other investors to buy right now is UnitedHealth Group. Importantly, the health insurer was Buffett's biggest buy in Q2 -- roughly $1.57 billion of his $3.9 billion invested.
UnitedHealth Group is a textbook Buffett stock. As previously mentioned, its valuation (factoring in growth prospects) is attractive. The company has a resilient business and generates strong cash flow.
Sure, UnitedHealth faces several challenges. Medical costs have been higher than anticipated, and the U.S. Department of Justice is investigating the company's Medicare billing practices. However, I think these headwinds are fully baked into the share price.
If I had to pick which of the 12 stocks Berkshire Hathaway bought for its portfolio in Q2 would most likely be significantly higher in one year, it would be UnitedHealth. I suspect Buffett would agree.
