Warren Buffett has never been afraid to go against the grain. He once summarized Berkshire Hathaway's investment strategy as, "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
That's resulted in some very notable moves from the Oracle of Omaha over the last few years. As many large-cap stocks have seen their valuations climb higher and higher amid unbounded investor optimism, Buffett has been a notable seller. In fact, he's sold more stock than he bought for Berkshire Hathaway in each of the last 11 quarters.
The most notable stock sale in that period is Apple (AAPL +1.41%), which at one point accounted for more than half of Berkshire's marketable equity portfolio. Buffett started selling the stock in late 2023, and he's since sold nearly 70% of Berkshire's stake in the business. In total, those stock sales raised an estimated $122 billion in cash based on the weighted average stock price. The actual sales price for each lot is unknown.
In the meantime, however, Buffett has started piling into two out-of-favor stocks, finding a few opportunities to be greedy where others are fearful.
Buffett's massive stock sale
Buffett's investment in Apple may go down as one of his greatest purchases of all time. He initially bought the stock in 2016, when investors were downbeat on the company's ability to keep growing. As a result, they assigned the stock a dirt cheap single-digit forward earnings multiple, which looked appealing to Buffett.
The stock has soared since then. The company's revenue and operating income continued growing and management has returned hundreds of billions back to shareholders through repurchases and dividends, supporting strong earnings-per-share growth.
But a good chunk of Apple's share price appreciation has come from multiple expansion. The stock now trades for 32 times forward earnings. While Apple has seen its operating margin expand thanks to its fast-growing services segment, and EPS gets an additional boost as it uses its massive free cash flow to buy back shares, that earnings multiple may be a bit of a reach for a value-focused investor like Buffett.
NASDAQ: AAPL
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Buffett has a second reason for selling Apple, though. The current tax law requires Berkshire Hathaway to pay just 21% on its capital gains. That's the lowest corporate tax rate since the 1930s. Considering the rising debt level of the U.S. government, Buffett doesn't think that's a sustainable rate for very long, despite new tax legislation extending that rate this year.
So, an expensive stock and a low tax rate makes for an opportune time to lock in gains on a successful investment. While much of the cash raised from Berkshire's Apple sales has gone into short-term Treasury bills, Buffett has found a few stocks to buy in recent quarters. Since late 2024, he's put about $4 billion of Berkshire's cash to work in two stocks the market has beaten down.
Buffett's latest big buy
Last quarter, Buffett took the opportunity to add UnitedHealth (UNH 2.16%) to Berkshire's portfolio, investing about $1.5 billion into the stock by my estimate. Not only is UnitedHealth a member of an industry that hasn't seen stock multiples explode higher over recent years, it's also faced some headwinds that have resulted in many investors punishing the stock.
As with other health insurance companies, United has seen utilization rates increase while medical costs rise, producing a double whammy for its earnings results. The company's net margin fell to 3.1% last quarter, down from 4.3% a year ago. Moreover, management withdrew its financial outlook earlier this year before revising it down. It now expects full-year earnings per share of $16, down from $27.66 in 2024.
NYSE: UNH
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UnitedHealth also suffers from an overhang of an ongoing investigation into its Medicare Advantage program. If the courts rule against United, it could be on the hook to repay billions in premiums plus face additional fines.
Despite those headwinds, the company still holds considerable long-term competitive advantages in the industry thanks to the size of its network and the cost advantages of scale. With an aging population, the managed health services industry should experience strong growth over the coming years, and UnitedHealth is well positioned to take advantage of that trend.
A new position brewing in Berkshire's portfolio
Another big purchase for Buffett and his team over the last few quarters comes from an industry that's not necessarily great for your health. Since the fourth quarter last year, Berkshire's put an estimated $2.6 billion to work buying beer brewer Constellation Brands (STZ +1.88%).
Constellation owns the rights to distribute top Mexican beer brands, Modelo, Corona, and Pacifico in the United States. Thanks in part to its national advertising campaigns to position those brands as premium beers, it absolutely dominates the market for imported beers.
Unfortunately, the entire industry faces several headwinds that are weighing on Constellation's earnings. 2025 has brought with it growing macroeconomic and sociopolitical uncertainty, especially among the Hispanic population that accounts for a huge portion of Constellation's sales. On top of that, younger Americans aren't as interested in drinking beer, favoring ready-to-drink cocktails and nonalcoholic beverages.
NYSE: STZ
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While Constellation was able to fend off those headwinds over the last few years, growing its market share while raising prices, the trends have caught up to it in 2025. Sales volume for its beer segment declined 7% last quarter, and management expects full year sales to fall 2% to 4%. Overall, management expects adjusted EPS to fall roughly 17% this year.
The strength of Constellation's brands and improvements in the macroeconomic environment should enable it to return to earnings growth over the long run. In the meantime, it's another opportunity for Buffett to add to a growing position.
It's worth noting Constellation Brands' stock remains below Berkshire's initial purchase price. UnitedHealth shares, meanwhile, have rallied higher since Berkshire's disclosure in August. As such, Constellation may present a better opportunity for investors looking to follow in Buffett's footsteps.
