TLDR
- Warren Buffett’s Berkshire Hathaway acquired 5 million shares in UnitedHealth Group, worth $1.37 billion
- UnitedHealth stock jumped 13% in premarket trading following the news
- Buffett previously owned UnitedHealth shares from 2006-2009 before selling in 2010
- UnitedHealth faces multiple challenges including soaring medical costs and federal investigations
- The company lowered profit forecasts and expects billions in additional costs
Warren Buffett’s Berkshire Hathaway has acquired 5 million shares in UnitedHealth Group. The regulatory filing was revealed Thursday evening.
The news sent UnitedHealth stock soaring 13% in premarket trading Friday. The stake is worth $1.37 billion based on Thursday’s closing price.
This marks Buffett’s return to UnitedHealth after more than a decade. The legendary investor previously held about 1.18 million shares between 2006 and 2009.
He sold his entire stake in 2010 during a broader retreat from health insurers. The timing of this new investment is particularly interesting given UnitedHealth’s current struggles.
The healthcare giant is dealing with multiple headaches. Medical costs have been climbing rapidly across the industry.
Federal investigations are ongoing into various aspects of the company’s operations. The company is still dealing with fallout from the killing of a top executive.
A major cyberattack last year continues to create problems. All these issues have weighed heavily on the stock price.
Challenging Financial Picture
UnitedHealth reported disappointing second-quarter results in July. The company was forced to lower its guidance for the rest of the year.
Management has warned investors about prolonged pain ahead. They’ve issued a far lower profit forecast than previously expected.
The company expects billions in additional costs over the upcoming quarters. This paints a challenging picture for the healthcare conglomerate.
Despite these issues, Buffett saw enough value to make a major investment. The Oracle of Omaha is known for his contrarian investing approach.
UnitedHealth stock is down 46% year-to-date. This steep decline may have caught Buffett’s attention as a potential buying opportunity.
Broader Berkshire Activity
The UnitedHealth purchase wasn’t Berkshire’s only move last quarter. The conglomerate made several other new investments.
Berkshire added a 6.6 million share stake in Nucor Corp. The steelmaker represents another new position for the investment giant.
A 1.5 million share stake in homebuilder DR Horton was also acquired. Berkshire bought 780,000 shares in Allegion PLC as well.
The company purchased 1.2 million shares in Lamar Advertising Company. These moves show Berkshire’s continued appetite for new investments.
At the same time, Berkshire trimmed some major positions. The company reduced its massive stakes in Apple and Bank of America.
Stakes in Charter and DaVita were also lowered. However, Berkshire added to positions in Chevron and Constellation Brands.
The company increased holdings in Domino’s, HEICO, Lennar, and Pool Corporation. Berkshire completely liquidated its stake in T-Mobile US Inc.
Berkshire’s position in UnitedHealth was held as of the end of the second quarter 2025. The stake could have grown or fallen since that reporting period.
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