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If a billionaire is backing up on the truck on a stock, you may want to jump in, too.
Look at UnitedHealth Group (SYM: UNH), for example.
Warren Buffett’s Berkshire Hathaway, which built up its largest cash stockpile in years, reaching $347.7 billion in the first quarter of 2025, just bought 5.04 million shares of UNH for $1.57 billion. Typically, when Buffett’s Berkshire Hathaway buys a stock, it can lead to increased investor confidence and potentially higher stock prices due to the reputation of the firm, and the longstanding belief Buffett buys quality stocks at a quality price.
That would explain why shares of UNH rocketed 14% higher shortly after.
Here are three more you may want to look into.
Amazon (SYM: AMZN)
Billionaire Bill Ackman just opened a new position in Amazon (SYM: AMZN) in the second quarter. In fact, he increased his stake by 5.82 million shares for about $1.28 billion. It now makes up about 9.3% of his portfolio.
Not only did he buy on the cheap, he picked up more shares as a fan of Amazon CEO Andy Jassy and the potential for AMZN to see greater profit-margin expansion and more revenue growth. In addition, the billionaire bought because President Trump’s tariffs weren’t going to hurt Amazon’s e-commerce business by much. Plus, Amazon Web Services’ growth is still strong.
Recent earnings haven’t been too shabby either. In its second quarter, EPS of $1.68 beat by 35 cents. Revenue of $167.7 billion, up 13.3% year over year, beat by $5.59 billion.
Lennar (SYM: LEN)
Berkshire Hathaway acquired over seven million shares of Lennar (SYM: LEN) this year for about $800 million. This is being seen as a vote of confidence in the U.S. housing market.
“Berkshire investing in homebuilding is a boost of confidence for new home supply in the U.S., says Realtor.com senior economist Joel Berner. The country is facing a housing shortage of nearly 4 million homes, and the only solution is for someone to build them. This move suggests optimism that the housing market will rebound and support new home sales”
Over the last several weeks, LEN ran from a low of about $100.67 to a recent high of $133. From here, based on Buffett’s confidence in the housing market, we’d like to see LEN initially retest $150 a share near term.
With a yield of 1.5%, Lennar recently paid out a dividend of 50 cents per share on July 18.
Lamar Advertising (SYM: LAMR)
With a yield of just under 5%, Lamar Advertising (SYM: LAMR) also caught Buffett’s eye.
Over the last few months, Buffett’s Berkshire Hathaway bought 1.17 million shares of the LAMR stock for about $144 million. Part of the reason Buffett bought the out of home advertising company and real estate investment trust (REIT) that pays a respectable, consistent dividend.
LAMR also just declared a quarterly dividend of $1.55 per share, which is payable on September 30 to shareholders of record as of September 19.
The company also increased its existing buyback program by $150 million in May. Plus, as noted by Seeking Alpha, “Management expressed confidence in its M&A pipeline, digital deployment targets, and financial positioning…”
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Written by Ian Cooper