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Monitoring the trading activity of professional fund managers can be a good way to identify stocks to buy. After all, these investors tend to do a lot of research before investing in a company (and have to answer to their clients if they get it wrong).
Here, I’m going to highlight three shares that were snapped up by pros in the second quarter of 2025. Are they worth considering today?
UnitedHealth
First up, we have UnitedHealth (NYSE: UNH), the largest health insurer in the world. This stock was bought by a range of top investors in Q2 including Warren Buffett (for his firm Berkshire Hathaway), David Tepper of hedge fund Appaloosa, Michael Burry (of ‘The Big Short’ fame), and the UK’s Stephen Yiu, who runs the Blue Whale Growth fund.
Now, this company’s share price has shot up since it came to light that Buffett bought stock. Currently, it’s trading at $308 – up 31% from its 2025 lows of $235.
I still believe there’s value on offer, however. At current levels, it’s still almost 50% below its highs and trading on a very reasonable price-to-earnings (P/E) ratio of 17.
It’s worth pointing out that this insurer has had some significant performance issues recently. Ultimately, it underestimated the demand for, and cost of, health insurance in the US and got its pricing all wrong.
It could take a while to turn things around. But I reckon it will get there eventually so I believe it’s worth considering today.
Taiwan Semi
Next, we have Taiwan Semiconductor Manufacturing Company (NYSE: TSM). It’s the largest semiconductor manufacturing company in the world.
This stock was snapped up by a range of top investors including billionaire Stanley Druckenmiller, tech expert Brad Gerstner of Altimeter Capital, and Stephen Yiu again.
The share price here has had an explosive move higher since its April lows. So, the pros may have paid much lower prices for their shares.
I still believe the stock is worth a look at today’s levels though. With the forward-looking P/E ratio sitting at 23, the valuation doesn’t appear to be stretched.
That said, semiconductor stocks can be volatile at times. And I reckon there might be better buying opportunities here in the months ahead.
If there’s talk of an economic slowdown, or increased geopolitical tension, the share price is likely to pull back. That could be a good buying opportunity to think about.
Alphabet
Finally, we have Google and YouTube owner Alphabet (NASDAQ: GOOG). It was bought by billionaires Bill Ackman, who runs FTSE 100 investment trust Pershing Square Holdings and Seth Klarman, CEO of Baupost Group.
It’s great to see big-name buying here. Because I’ve been arguing for a while that this Magnificent 7 stock is undervalued.
There are obviously risks around AI. Today, the way we’re searching for information is changing rapidly.
However, Alphabet isn’t sitting still. It’s rolling out some incredible AI search features.
Meanwhile, the company has the lowest valuation in the Mag 7. At present, it’s trading on a forward-looking P/E ratio of 19.3 (using next year’s earnings forecast).
Add in the fact that this company has exposure to lots of high-growth industries including cloud computing and self-driving cars, and I think the set-up is attractive. To my mind, it’s worth further research.
