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Okay, everybody. Welcome back to the Contrarian. It's my pleasure to welcome you back today to beautiful Montana. I'm in a wheat field right now. Actually, um you might be wondering if I might get in trouble for this and I actually will not because I know the owners of this wheat field and they actually wouldn't mind me doing this here.
So, just for the record, talking about Warren Buffett, Michael Bur recently buying large positions in United Health and the healthc care sector as a whole. Very interesting to see. I have got a list here of Michael Bur's updated portfolio. Of course, just a couple days ago, we got news that Warren Buffett had been acquiring, you know, this massive stake in an unnamed healthcare comp or, you know, we didn't know what uh company it was actually.
that he'd been trimming his position in Apple. He'd been adding to an unnamed stock. And for a while, he'd been able to keep it uh secret. So, Berkshire Hathway didn't release this until recently, just a couple days ago, they released that they now have a 1.57ish uh position in United Health, which is a um healthcare insurance company essentially.
And of course, this stock has been absolutely destroyed in the last year, especially in the last 6 months. It was the company involved with the whole CEO assassination that unfortunately took place earlier this year. Um, you know, kind of in line with that, there was a lot of concern regarding, you know, is the Trump administration going to crack down on um the healthcare sector as a whole?
are they kind of be uh able to get away with less, you know, is that going to hurt their bottom line? And the healthc care sector as a whole has definitely lagged pretty much everything else. Um maybe oil stocks, you know, the energy sector is really underperformed as well, but it's kind of hard to find something that has underperformed as much as the healthc care sector.
Um, and so I think Warren Buffett saw an opportunity there, decided to start acquiring a big position in United Health. Um, and so, you know, kind of right at the same time, we got news that Michael Bur had updated his 13F filing. Um, of course, Scion Asset Management is Michael Bur's hedge fund. It's mainly just Bur's capital as well as some close friends and family.
So, it's really not a stock or it's not a hedge fund that your average investor can really invest with. It's kind of just for a select group of people. Um, at least with Scion Asset Management. Now, with Bur, it's really interesting because he's had a lot of kind of I would say back and forth. Um, but mainly bearish kind of comments on social media.
And, um, you know, he actually just tweeted a day ago. He said one word and that one word was buy. And I think we could kind of um summarize his portfolio update with that one word because he's apparently flipped from being bearish to being extremely bullish, at least temporarily. And I say temporarily because a lot of his largest positions are call options.
And that is a time-sensitive kind of trade. It's a time-sensitive bet on the upside. you're bullish but in the short term. So, you know, he has his largest position now is a call option position on United Health again, Regeneron Pharmaceuticals. He has call options on that stock as well. He has call options in Lululemon, in Meta, in Estee Lauder, in JD.com, and in Alibaba.
These are his largest positions. They're all in call options. Um he also has shares again in Estee Lauder, in Lululemon, in Regeneron Pharmaceuticals, and in United Health again. So kind of repetitive bets. You know, he's he was bullish in the short term, but he's also bullish in the longer term, it looks like, with a few of these stocks.
So, um you know, of course, this is a snapshot of the entire last 3 months, kind of all the transactions that took place there. And so, you know, he flipped from being bearish, which is what we saw during the last 13F filing, um, where he was holding a lot of put options, um, even on a stock like JD.com or Alibaba, he held put options on those stocks.
And now he's flipped being bullish on them which I think is kind of probably coinciding with the liberation day bottom perhaps where um you know it would have been good to get out if you were short at that time. It would have been beneficial to flipped being bullish and so it appears Michael Bur may have kind of timed that.
Well, it's a little hard to say exactly because we don't know the dates on when he made these transactions, but um you know, it's likely that he timed it fairly well. I will say though, especially on his largest positions, United Healthcare and Regeneron and Pharmaceuticals. Of course, I said the healthcare industry really has not um recover.
it's not participated in this rally that we've seen, which has been pretty significant since the bottom back in May um just a few months ago. I mean, the NASDAQ's up some 30%, S&P's up some 27%ish. So, that's a huge rally in just a few months. Healthc care sector really has not recovered since then.
So, it appears like this bet, you know, maybe hasn't quite played out yet for Bur or even for Warren Buffett. Um maybe they'll continue adding to their positions in United Health. Maybe like Bur is going to add more shares. I don't know. But um this might be one area where I might just not see things quite the same.
Not see what they're exactly seeing with the uh healthc care bet of theirs, you know, recently with Warren Buffett or with Michael Bur getting into United Health. Because if anything that I've learned in the last few years with the market right now is that kind of momentum is the place to be for better or for worse.
So like you could look at a stock like United Health that's been really beaten down. Maybe has good fundamentals. I mean, it probably does in comparison to your average stock out there. You know, probably has a PE under what the composite PE multiple of the NASDAQ or S&P is, but um that doesn't necessarily mean that it's a good stock to buy, you know, even in the short term, like that it might rally.
Um if anything, it might indicate that it's kind of continue to underperform in the in the coming months. So that's kind of one observation on my end is that um unfortunately value investing hasn't worked as well in the last few years. I'm sure that will change again where you know value investing comes more into play um where it actually matters what the fundamentals are behind a company you know like Nvidia trading at the P multiple that it has you know kind of this crazy valuation assigned to a stock like Nvidia which right now is by far the biggest stock.
I actually called that like over a year ago saying that Nvidia would get there because just clearly what what I just mentioned of momentum leading to more momentum. Um, it's just totally that dynamic going on right now in the stock market. For better or for worse, kind of for worse, I would say because it amplifies what has performed well in the past and kind of underplays some things that, you know, maybe are deserving of a higher valuation, which um, you know, why that kind of dynamic is existing right now probably has a lot to do with the passive investing flows.
Of course, a lot of you are probably familiar with Mike Green, a guest I've had on here before, but um I think what he's said the last few years has just been very preient about passive investing, how the shift to passive has really kind of taken any kind of logical thinking out of the market um towards just like if money is flowing into the market, it's flowing into the largest stocks market cap weighted irregardless of what the fundamentals are.
or if money is flowing out, it's flowing out of those stocks in proportion. So, it's just a very simple algorithm doesn't look at underlying fundamentals and I think it's why we've kind of seen this drive towards momentum. Um, so bottom line, Bur just switched in the last quarter from being bearish to extremely bullish.
Warren Buffett is also bullish on United Health stock. Um, it is actually starting to rain out here. So, I mean, Montana's uh very inclement weather. You're kind of getting to witness that right now. Um, and since I have addressed everything I wanted to touch on in this video, I'm going to call it good.
But be sure to subscribe because what other YouTuber would be out in a rainy day and, you know, raining in a wheat field to record a video? So, be sure to subscribe. Hope to see all of you again at some point. Thank you.
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