(Bloomberg) --Warren Buffett's Berkshire Hathaway Inc. bought shares of UnitedHealth Group Inc. in the second quarter, sending the health insurer's stock soaring in post-market trading.
The chief executive officer of the Omaha, Nebraska-based conglomerate acquired 5 million shares in UnitedHealth, granting Berkshire a stake worth $1.6 billion, according to a filing Thursday. Berkshire also sold its $1 billion stake in T-Mobile US Inc. during the period, exiting the telecommunications operator.
Buffett's investment in UnitedHealth comes as the health company faces multiple crises. Last year, a UnitedHealth executive, Brian Thompson, was shot to death in Manhattan.
UnitedHealth, along with other US health insurers, has also faced unexpected increases in medical costs. In April, it reported earnings below Wall Street estimates for the first time in more than a decade, sending the stock price plummeting. It has since replaced its CEO and announced plans to replace its chief financial officer.
The disclosure of Berkshire's UnitedHealth stake pushed the insurer's shares up as much as 9.6% in post-market trading Thursday.
Apple, BofA Trim
Buffett also sold 20 million shares of Apple Inc. during the period, after slashing his holding in the iPhone manufacturer last year. Berkshire's Apple stake remains its largest equity stake by market value, despite it falling by about $9.2 billion in the three months ended June 30.
Berkshire also renewed its effort to trim its holding in Bank of America Corp., selling 26 million shares and bringing its stake down to about 8% at the end of June. Buffett started whittling down the bank investment last year, without providing any explanation for the move.
One of its equity bets, a stake in consumer foods giant Kraft Heinz Co., has been a headache for Buffett's company. The conglomerate
Meanwhile, Berkshire tweaked its investment in US homebuilders, building its stake in Lennar Corp. and selling shares of D.R. Horton Inc. The company also bought more shares of steel manufacturer Nucor Corp. Those changes were omitted in a previous filing as the company requested confidentiality treatment from the Securities and Exchange Commission.
