Amid Warren Buffett's $340 Billion Warning to Wall Street, He Can't Stop Buying Shares of These 7 Stocks

Investors who follow Warren Buffett probably already know that his lack of interest in putting Berkshire Hathaway's (NYSE: BRK.A) (NYSE: BRK.B) huge hoard of cash into the market is very likely a warning that most stocks aren't worth buying at their present prices.

He's not explicitly said as much. Actions (or lack of actions, in this case) speak louder than words, though. And Berkshire's $340 billion worth of cash just sitting on the sidelines speaks volumes ... even more so given that the conglomerate's been sitting on a similar amount since the middle of last year.

To say Buffett's not been buying anything, however, isn't entirely accurate. He has been. Berkshire recently scooped up a little more than 5 million shares of beaten-down UnitedHealth worth roughly $2 billion. It also recently announced plans to purchase Occidental Petroleum's (NYSE: OXY) chemical arm Oxychem for nearly $10 billion.

These are pittances compared to Berkshire's available cash, of course, so don't read too much into these investments. Rather, you might want to take note of all the stocks Buffett's been buying for Berkshire that it already owns, quietly adding to its existing position. This is quite telling in and of itself, and may well be a lead you want to follow.

Here's a rundown of the seven positions that Berkshire expanded through the first half of this year.

1. Chevron

Oil giant Chevron (NYSE: CVX) was already Berkshire's fifth-biggest equity holding. During the second quarter of this year, it became even bigger thanks to the addition of another 3.5 million shares. It now accounts for a little over 6% of Berkshire Hathaway's equity portfolio, in fact. Combined with its stake in Occidental, this means energy stocks alone now make up about 10% of the conglomerate's total stock portfolio.

It's a curious decision in light of the advent of electric vehicles and renewable energy sources. Fossil fuels are seemingly at the end of their useful life.

However, maybe Buffett recognizes what not enough people are publicly acknowledging. That is, the growth of alternative energy just isn't happening fast enough to displace the ongoing need for crude oil and natural gas. Analysts at Goldman Sachs don't expect the world to reach "peak oil" (the point at which demand for oil reaches its record high and then tapers off forevermore) until 2034, with consumption likely to remain firm -- keeping the industry profitable -- well beyond 2040.

2. Pool Corp.

Swimming pool supply company Pool Corp. (NASDAQ: POOL) was a surprising purchase when Berkshire first stepped into it in the third quarter of last year. Even more curious is the fact that it's added to the position every quarter since then, bringing the holding's total value up to $1 billion. That's just a little less than 10% of the entire company.

This may be a bit of bargain-hunting. Shares of this well-run company haven't really budged since pulling back in 2022. Just don't expect too much from Pool Corp. too soon. It needs firm economic strength to muster any growth of its own.

3. Sirius XM

Berkshire's had an on-again/off-again relationship with Sirius XM (NASDAQ: SIRI) for a long time. It finally looked like Buffett was happy with the size of Berkshire's position as of late last year. Then, just a few weeks ago, Berkshire Hathaway picked up another 5 million shares that it seemingly didn't really need to buy, bringing the stake up to 125 million shares worth a little less than $3 billion.

The satellite radio outfit doesn't seem like the most promising of prospects. Its dividend yield is right around 5% now, though, and that's based on a dividend payment that's proven very reliable.

4. Constellation Brands

Constellation Brands (NYSE: STZ) -- parent to beer brands like Modelo and Corona -- feels a bit out of place in Berkshire Hathaway's stock portfolio. It's also not performed all that well since Buffett started buying it late last year. Shares are down 40% from December's high. However, Buffett's used this weakness to purchase more shares, adding another 1.4 million shares in Q2 to bring the count up to 13.4 million. Clearly, Buffett and his lieutenants see something here, even if it's difficult for other investors to see.

5. Nucor

Berkshire Hathaway surprised a lot of people by jumping into a 5.8 million-share stake in steel company Nucor (NYSE: NUE) in the first quarter, following a decent-sized pullback. In retrospect, though, neither the trade nor the decision to add another 857,000 shares to the mix in the meantime is all that surprising. It's an attractive way to capitalize on whatever economic recovery is in the cards. Moreover, while it was initially blocked by then-President Joe Biden in January of this year, Japan's Nippon Steel's acquisition of U.S. Steel since then underscores the importance and value of this industry.

6. Lennar

Buying a stake in homebuilder D.R. Horton in Q1 of this year made a fair amount of sense at the time. Weakness in the U.S. real estate market has been a drag on the homebuilding sector, undermining the industry's stocks. But it's a cyclical business that will recover sooner or later.

Warren Buffett hasn't bought any more shares of D.R. Horton since then, though. Rather, Berkshire added to an existing position in rival Lennar's (NYSE: LEN) (NYSE: LEN.B) B shares in Q2. It has also opened an entirely new position in ordinary shares of this homebuilder just since the beginning of this year. As of the latest look, the conglomerate owns 7 million ordinary shares of Lennar collectively worth just under $800 million, plus another tiny position in Lennar's B shares.

The ultimate underlying idea is the same. This is largely a bet on the eventual recovery of the overall economy, which should bring real estate along with it.

Of course, it doesn't hurt that JPMorgan (along with others) says that the U.S. needs between 2.5 million and 5 million more homes than it currently has to offer residents. That's several years' worth of new home building that needs to be done to adequately meet demand.

7. Heico

Finally, put techno-industrial name Heico (NYSE: HEI.A) on the list of existing trades Buffett is adding to, even though he's keeping most of his powder dry.

It's not a very big position. Then again, it's not a very big company. Its market cap is less than $40 billion, while Berkshire Hathaway only owns about 1.3 million A shares worth roughly $300 million. That's about 1.5% of the entirety of Heico.

Still, it's worth highlighting simply because Buffett's seen fit to add to the position for two consecutive quarters now. Double-digit revenue and profit growth isn't anything unusual for this often-overlooked outfit that's proving to be indispensable to the aerospace sector. To Buffett's credit, the stock's weakness earlier this year has been unwound quite well since then.

JPMorgan Chase is an advertising partner of Motley Fool Money. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Chevron, D.R. Horton, Goldman Sachs Group, JPMorgan Chase, and Lennar. The Motley Fool recommends Constellation Brands, Heico, Occidental Petroleum, and UnitedHealth Group. The Motley Fool has a disclosure policy.