In a significant shift for the financial world, Warren Buffett, the revered chairman and CEO of Berkshire Hathaway for 55 years, is slated to transition from his executive role by the close of 2025. This summary outlines his key investment actions during the second quarter of 2025, providing a glimpse into the strategies that have defined his illustrious career.
Warren Buffett's Investment Strategy and Key Holdings in Q2 2025
The second quarter of 2025 marked a pivotal period for Berkshire Hathaway, as its long-serving chairman and CEO, Warren Buffett, announced his impending retirement from the chief executive position by year-end. Greg Abel has been named as his successor. Despite the announcement, Buffett will retain his role as chairman, ensuring continuity and stability for the company and its investors.
Buffett's recent investment activities, as detailed in the August 14, 2025, 13F filing, reveal a steadfast adherence to his core investment principles. Amid a volatile market characterized by tariff-induced downturns and subsequent record highs, Buffett maintained a remarkably consistent portfolio. His substantial cash reserves, amounting to $344.1 billion, remained largely intact, reaffirming his preference for liquidity and readiness to seize opportunities.
His portfolio continues to be dominated by a select few high-conviction holdings. Apple Inc. (AAPL) remains the largest component, representing approximately 21.4% of the portfolio, despite a slight reduction of 20 million shares in Q2. American Express Company (AXP) and Bank of America (BAC) also feature prominently, reflecting long-term commitments, with Buffett having held American Express shares since 1991 without selling. Coca-Cola (KO), a holding since 1988, further exemplifies his 'forever' holding philosophy.
Beyond his established positions, Buffett also made strategic new investments. He entered the homebuilding sector with stakes in Lennar (LEN) and D.R. Horton (DHI), valued at approximately $800 million and $190 million, respectively. In the industrial sector, he invested about $860 million in steel producer Nucor (NUE). The most noteworthy new acquisition, however, was a substantial $1.6 billion stake in UnitedHealth Group (UNH). This move into the health insurance giant, despite its recent challenges, aligns with Buffett's classic value investing approach of acquiring strong businesses at discounted prices during periods of short-term adversity.
Furthermore, Berkshire Hathaway augmented its existing positions. The company increased its holdings in Constellation Brands (STZ), owner of popular beer brands like Corona and Modelo Especial, to 13.4 million shares, valued at about $2.2 billion. Additionally, its stake in Pool Corp (POOL), a leading supplier for swimming pools, more than doubled to nearly 3.5 million shares, exceeding $1 billion in value.
Buffett's strategic decisions during this transitional phase reinforce his enduring investment philosophy: a focus on concentrated, high-conviction bets on established companies with strong fundamentals, competitive advantages, and the potential for long-term growth, even as market dynamics fluctuate.
Following Warren Buffett's investment decisions offers a valuable lesson in fundamental analysis and long-term vision. His unwavering commitment to companies with strong intrinsic value, regardless of short-term market fluctuations, consistently outperforms. This approach highlights the importance of thorough research, patience, and conviction in one's investment choices, principles that are vital for any investor seeking sustainable success in a dynamic market.