Karen Finerman typically likes to sell puts on days of volatility, but today she wants to hang on to those puts a “little bit longer.” She thinks more volatility is coming.
The headline: Buffett’s Berkshire Hathaway Boosts Stakes in Wellpoint, UnitedHealth, Bank of America and more
A regulatory filing that came out after the close shows that, as of June 30, Berkshire has been buying Bank of America (BAC), WellPoint (WLP), UnitedHealth (UNH), Burlington Northern (BNI) and Dow Jones (DJ) while selling Norfolk Southern (NSC), Union Pacific (UNP), H&R Block (HRB), Western Union (WU) and Pier 1 (PIR).
He’s making a big bet with the healthcare stocks WLP and UNH, Guy Adami says. There’s a lot of risk in them, but they should “obviously be on your radar screen” now.
Karen Finerman thinks Buffett is being a plain-old risk arbitrageur with his stake in Dow Jones. She also says it’s important to note that these holdings are as of June 30 – which was a “lifetime ago” with regard to the financials.
In addition to Buffett, Eddie Lampert has reportedly boosted his stake in Citigroup (C) to 25 million shares – an addition of 10 million shares – as of June 30.
Patience is paying off for Lampert, Pete Najarian says. He might be a little early but he’s still “on target on the right stock.”