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Berkshire Hathaway's Top Stock Picks

Aug 31, 2025

Overview

The video reviews Berkshire Hathaway's five largest stock purchases from the latest quarter under Warren Buffett, including analysis and personal rankings for each stock.

Recent Berkshire Hathaway Stock Purchases

  • Berkshire Hathaway, led by Warren Buffett, made significant stock acquisitions in the last quarter before Buffett's retirement.
  • The company spent billions on major stocks, exerting considerable influence over the stock market.
  • The five highlighted purchases are United Health Group (UNH), Chevron (CVX), Constellation Brands (STZ), Pool Corporation (POOL), and Lennar Corporation (LEN).

United Health Group (UNH)

  • New $2 billion position in UNH, the world’s largest health insurer, recently affected by controversies and DOJ investigations.
  • Stock price declined sharply due to negative press and legal issues but now trades at a cheaper valuation with a higher dividend.
  • The business is fundamentally strong, with favorable long-term demographic trends and AI integration opportunities.
  • Despite attractive investment qualities, concerns about controversy and healthcare regulation remain; ranked #3 by the presenter.

Chevron (CVX)

  • Berkshire increased its position by over $500 million, totaling $17.5 billion in Chevron.
  • While oil sector prospects are volatile, Chevron leverages its scale for investment in renewables.
  • Current valuation is higher than peers but justified by superior business and renewable investments; maintains a strong dividend.
  • Presenter prefers Chevron personally over United but ranks it lower due to valuation; moved to #3.

Constellation Brands (STZ)

  • New and growing position, with an additional $240 million investment this quarter.
  • Owns major alcoholic beverage brands and a stake in Canopy Growth, though the latter has hurt performance.
  • Stock has dropped significantly but now presents a favorable valuation with potential for recovery.
  • Presenter finds STZ attractive, places it at #2, and may consider investing if the price declines further.

Pool Corporation (POOL)

  • Increased position by 136%, with Pool mainly focused on the wholesale pool industry.
  • Market is niche, with recent sales declines and modest growth projections.
  • Valuation remains high versus sector averages, and dividend yield is low.
  • Presenter finds growth prospects limited; ranks last (#5).

Lennar Corporation (LEN)

  • Largest increase: over 265% in homebuilder Lennar.
  • Operates in a volatile real estate market with challenges from interest rates and home supply shortages.
  • Considered cheap currently, but low growth and dividend make it less appealing; presenter prefers REITs instead.
  • Ranked #4 by presenter.

Personal Stock Rankings (Highest to Lowest)

  • #1: (Implicitly another stock, as STZ is #2)
  • #2: Constellation Brands (STZ)
  • #3: United Health Group (UNH), then Chevron (CVX)
  • #4: Lennar Corporation (LEN)
  • #5: Pool Corporation (POOL)

Presenter’s Reflections

  • Buffett’s acquisitions signal a search for bargains in “boring” but stable companies, contrasting the presenter’s preference for tech and growth stocks.
  • Most purchases are understood and respected, even if not personally preferred.

Questions / Follow-Ups

  • Presenter asks viewers for opinions and rankings of the discussed stocks.

Full transcript