Buffett's holdings change: Still defensive

Berkshire Hathaway's second-quarter holdings have been made public. The overall structure remains unchanged, with a still-high 52.74% in cash and only 47.26% in stocks. Berkshire Hathaway even slightly reduced its holdings in the second quarter, primarily reducing its stake in Apple by 3.4%. Berkshire Hathaway added three stocks: real estate developer Lennar (0.3%), D.R. Horton (0.1%), and steel giant Nucor (0.3%). The most notable of these is UnitedHealth Group (UNH), which has been a major social media presence. UNH, short for UnitedHealth Group Inc., is the American people's health insurance company. The high cost of medical care in the United States has always been a major concern for American society. Without health insurance, ordinary people simply cannot afford medical care. Therefore, as long as the US government's fiscal policy is loose, it's good for UNH. UNH's prices have also been good recently. In December 2024, 26-year-old Luigi Mangione used a 3D-printed pistol to shoot and kill UNH President Brian Thompson outside the Manhattan Hilton Hotel in New York City. He believed that insurance companies were "rich and unkind" and had a habit of refusing claims. Police found three bullet casings at the scene with the words "deny," "defend," and "depose" written on them in permanent marker. These three words are commonly used by insurance companies when denying claims. This man wasn't some low-class wretch resentful of society, but rather a typical "second-generation rich": born in Maryland, his family owned resorts, country clubs, and golf courses, and he earned a master's degree in engineering and computer science from the Ivy League University of Pennsylvania. He was as handsome as the son of a Greek god. The orange jumpsuit he wore when he was arrested, and the dark red sweater he later wore in court, both of which sparked a global fashion storm. In other words, this was a classic modern-day Robin Hood story—one that significantly damaged UnitedHealth's image. Since hitting a high of approximately $630 in November 2024, UNH's stock price experienced a maximum drawdown of more than 50% in 2025, impacted by rising health insurance utilization, regulatory investigations, and changes in senior management. It briefly fell below $300. According to Buffett's stock selection logic, the first part is fundamentals, while the second part is a "margin of safety." Companies with strong fundamentals that plummet due to external shocks are good candidates. UNH is also a defensive stock, making it more resilient than tech stocks like M7 during a recession. Taking all these factors into account, it's no wonder Buffett immediately added UNH to his top 20 holdings, representing a 0.61% stake. Other investors who bought UNH with him in the second quarter included Michael Burry and David Tepper. The former rose to fame during the 2008 financial crisis and was the inspiration for the film "The Big Short." The latter, a hedge fund giant, also thrived during the 2008 financial crisis. Judging by Berkshire's holdings, the old man remains concerned about the current market, which generally aligns with what he said at the shareholder meeting in May: "There will be significant opportunities within 3-5 years (the implicit implication being that this isn't happening now)." After all, US stock valuations have already exceeded his comfortable "margin of safety," and Trump's volatile behavior is a source of risk for the bosses. I don't know why, but lately, it feels like US and A-shares have been moving in similar directions.