Does Warren Buffett Have Insights That Wall Street Misses? The Legendary Billionaire Sells Off $122 Billion of This Major Asset and Invests $4 Billion in These

Warren Buffett has always been willing to take a contrarian approach. He once described Berkshire Hathaway's investment philosophy as, "Our goal is to be cautious when others are confident, and to be confident when others are cautious."

This mindset has led the Oracle of Omaha to make some significant decisions in recent years. As investor enthusiasm has pushed the valuations of many large-cap companies to new heights, Buffett has stood out as a seller. In fact, for the past 11 quarters, Berkshire Hathaway has sold more shares than it has purchased.

The most significant sale during this time was Apple ( AAPL -3.40%), which once made up over half of Berkshire’s publicly traded stock portfolio. Buffett began reducing his position in late 2023, and to date, he has sold nearly 70% of Berkshire’s holdings in Apple. Altogether, these sales generated an estimated $122 billion in cash, based on the average share price at the time, though the exact sale prices are not public.

Meanwhile, Buffett has started to invest heavily in two stocks that have fallen out of favor, seizing opportunities where others are hesitant.

Buffett’s major stock divestment

Buffett’s initial investment in Apple may go down as one of his most successful bets. He began buying shares in 2016, when many doubted the company’s ability to sustain its growth. As a result, Apple traded at a very low forward earnings multiple, which attracted Buffett’s interest.

Since then, Apple’s stock price has climbed dramatically. The company’s revenue and operating profits have continued to rise, and management has returned vast sums to shareholders through buybacks and dividends, fueling robust earnings-per-share growth.

However, a large part of Apple’s share price increase is due to its valuation multiple expanding. The stock now trades at 32 times forward earnings. While Apple’s operating margin has benefited from its rapidly growing services business, and its share repurchases have further boosted EPS, this valuation may be too high for a value-oriented investor like Buffett.

There’s another reason Buffett has trimmed his Apple position. Current tax laws mean Berkshire Hathaway pays only 21% on capital gains, the lowest corporate rate since the 1930s. Given the rising U.S. government debt, Buffett doubts this low rate will last, even though recent legislation has extended it for now.

With Apple’s high valuation and a historically low tax rate, Buffett saw a good opportunity to realize gains. While much of the proceeds from selling Apple have been parked in short-term Treasury bills, Buffett has also found a few stocks to buy. Since late 2024, he has invested roughly $4 billion of Berkshire’s cash into two stocks that have fallen out of favor with the market.

Buffett’s newest major investment

In the most recent quarter, Buffett added UnitedHealth ( UNH -3.59%) to Berkshire’s portfolio, putting about $1.5 billion into the company by my calculation. UnitedHealth operates in a sector that hasn’t seen valuations soar in recent years, but it has faced challenges that have led many investors to sell the stock.

Like other health insurers, UnitedHealth has dealt with rising utilization and increasing medical costs, both of which have pressured its earnings. Last quarter, its net margin dropped to 3.1%, down from 4.3% the year before. Earlier this year, management withdrew its financial guidance before revising it downward, now projecting full-year EPS of $16, compared to $27.66 in 2024.

UnitedHealth is also dealing with an ongoing investigation into its Medicare Advantage program. If the courts rule against the company, it could be required to repay billions in premiums and face additional penalties.

Despite these obstacles, UnitedHealth maintains significant long-term advantages in its industry, thanks to its extensive network and cost efficiencies from scale. With the U.S. population aging, the managed healthcare sector is likely to see strong growth in the years ahead, and UnitedHealth is well positioned to benefit from this trend.

A fresh addition to Berkshire’s holdings

Another notable acquisition by Buffett and his team in recent quarters comes from a sector not known for its health benefits. Since the fourth quarter of last year, Berkshire has invested an estimated $2.6 billion in beer producer Constellation Brands ( STZ -1.08%).

Constellation holds the U.S. distribution rights for leading Mexican beer brands like Modelo, Corona, and Pacifico. Its national marketing campaigns have helped establish these as premium beers, giving Constellation a dominant position in the imported beer market.

However, the entire industry is facing several challenges that have impacted Constellation’s earnings. In 2025, economic and political uncertainty has increased, particularly among the Hispanic demographic that makes up a large share of Constellation’s customer base. Additionally, younger consumers in the U.S. are turning away from beer in favor of ready-to-drink cocktails and nonalcoholic options.

Although Constellation managed to overcome these challenges in recent years by increasing its market share and raising prices, these trends have caught up with the company in 2025. Beer sales volume dropped 7% last quarter, and management expects annual sales to decline by 2% to 4%. Overall, adjusted EPS is projected to decrease by about 17% this year.

Constellation’s strong brand portfolio and an improving economic outlook should help it return to earnings growth over time. For now, this gives Buffett another chance to build a position at a favorable price.

It’s important to note that Constellation Brands’ shares are still trading below the price at which Berkshire first bought in. Meanwhile, UnitedHealth’s stock has risen since Berkshire’s investment became public in August. Therefore, Constellation may offer a more attractive entry point for those looking to follow Buffett’s strategy.