Warren Buffett’s Berkshire Hathaway disclosed a surprise $1.6 billion bet on troubled health insurer UnitedHealth Group in the second quarter, while paring back its Apple and Bank of America holdings and fully exiting its T-Mobile US position, a regulatory filing showed Thursday.

The Omaha-based conglomerate bought more than 5 million UnitedHealth shares during the quarter, sending the stock up as much as 9.6% in post-market trading. The stake ranks as Berkshire’s 18th-largest equity position, despite the insurer’s battered image, its shares were down nearly 50% this year before the filing, amid a Justice Department investigation into Medicare billing, a CEO resignation, and repeated profit warnings.

Apple, BofA cuts; T-Mobile exit

Berkshire trimmed its Apple holding by about 20 million shares, reducing the stake’s value by $9.2 billion during the period. Even after the cut, Apple remains Berkshire’s largest equity position by market value.

The company also sold 26 million Bank of America shares, taking its stake to roughly 8%, and liquidated its $1 billion investment in T-Mobile US.

Other portfolio moves

The filing revealed Berkshire building positions in steelmaker Nucor and homebuilder Lennar, while selling shares of D.R. Horton. Smaller stakes were added in outdoor advertising company Lamar Advertising and security products maker Allegion. Some of these changes were previously withheld from public view after the Securities and Exchange Commission granted Berkshire’s request for confidential treatment.

Buffett, who turns 95 this month and will step down as Berkshire’s chief executive at year-end, has long criticized the U.S. healthcare system as a “tapeworm” on the economy. While Berkshire’s $300 billion equity portfolio is widely associated with Buffett’s investing style, smaller and newer positions are often attributed to his deputies, Todd Combs and Ted Weschler, though Buffett maintains final say over capital allocation.

Berkshire’s largest holdings at the end of June remained Apple, American Express, Bank of America, Coca-Cola and Chevron.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)